Graphite, cathodes and anodes remain central to U.S. battery supply chain security. According to the International Energy Agency, China accounted for over 80% of worldwide battery cell production in 2025. The country also supplied approximately 85% of cathode active materials and over 90% of anode active materials. These critical components underpin the manufacturing of lithium-ion batteries used in electric vehicles and energy storage solutions. The International Energy Agency further identified China as the primary producer of lithium iron phosphate batteries, often referred to as LFP batteries. During 2025, U.S. battery manufacturing capacity experienced rapid growth as companies launched or expanded new facilities. Nevertheless, the majority of the raw materials and components used domestically are still sourced from abroad. Natural graphite exemplifies this dependency, as the U.S. reported complete reliance on imports for this material in 2025. China continued to be a key supplier, with Chinese processing companies dominating the production of battery-grade graphite used in traditional lithium-ion anodes. Securing Raw Materials Remains the Core Supply Challenge The U.S. Department of Energy is channeling new funds into segments of the supply chain that are still underdeveloped within the country. In August 2026, the department announced an allocation of $500 million dedicated to seven initiatives focused on critical minerals, battery development, and recycling efforts. These projects aim to boost domestic processing, recover materials from used batteries, and explore alternative anode materials. The Department emphasizes that this funding