US defence contractors are facing increased scrutiny over the origin of battery cells used in military systems as new requirements under the US National Defense Authorization Act (NDAA) place greater emphasis on supply chain transparency and security.
According to UK battery manufacturer Volklec, the updated rules represent a significant shift in how battery supply chains are assessed within the defence sector, with contractors increasingly required to demonstrate where battery cells are manufactured, where critical materials originate and whether supply chains expose programmes to compliance risks.
Johan Andersson, Chief Commercial Officer at Volklec, said the move reflects a growing recognition that batteries are a strategic defence capability rather than a simple procurement component.
“The USA has sent a clear signal to its defence supply chain: batteries of uncertain origin are no longer acceptable in critical military systems,” Andersson said.
He argued that battery provenance has become a matter of defence readiness and industrial resilience, with US contractors already auditing supply chains to identify potential vulnerabilities.
The comments come as defence organisations around the world increase investment in autonomous systems, unmanned aerial vehicles, tactical communications equipment and hybrid military vehicles, all of which rely heavily on battery performance.
According to Andersson, the dominance of overseas battery manufacturing presents a strategic challenge for Western defence industries. He noted that more than 90% of battery cells are currently produced abroad, while Western Europe lacks large-scale defence-ready cylindrical cell manufacturing capability.
Volklec believes the implications extend beyond the United States, particularly for companies seeking access to the world’s largest defence market.
“The United States is the largest defence market in the world. If UK and NATO defence companies aspire to supply into that market, they will need to demonstrate much greater control over their supply chains,” Andersson said.
He called on defence organisations to map battery cell provenance across programmes, qualify trusted allied suppliers and invest in domestic manufacturing capacity before future compliance requirements become more stringent.
The company is currently developing UK-based cylindrical cell manufacturing capability aimed at defence, industrial and mobility applications, positioning sovereign battery production as a key element of future defence resilience and allied supply chain security.
