In addition to mining and processing, the United States should focus on building a sound recycling infrastructure and promoting synergies across the lithium supply chain. Decades of dynamic changes in global supply chains have made the United States highly dependent on overseas lithium resources. At present, almost all of the lithium ore used in U.S. batteries is mined and processed overseas.

According to data from the International Energy Agency (IEA), China, Australia and Chile account for 68% of global lithium production; if Argentina is added, these four countries control 85% of global lithium refining capacity. China has long dominated lithium refining and battery production, controlling most of the world's production capacity. With the increasing importance of lithium-ion batteries as an energy carrier, China's dominant position in this market has posed a serious challenge to the energy security, innovation ability and competitiveness of the United States. In addition, global lithium demand is expected to grow fivefold by 2040.

The risks associated with this high dependence on overseas resources go well beyond the energy sector. Lithium batteries have a wide range of applications. In addition to electric vehicles and grid energy storage, they also cover forklifts, storage automation systems and backup power systems. They are widely used in manufacturing, logistics, medical, retail and distribution industries. Geopolitical tensions, supply chain disruptions, and price volatility threaten the stability of the U.S. energy infrastructure. Eliminating these risks urgently requires a comprehensive roadmap for building a local lithium battery supply chain. The roadmap should focus on two core areas: one is to establish a complete lithium battery recycling system, and the other is to achieve vertical integration of the industrial chain.