Story perspectives

West Faces $23 T Bill to Cut China Battery Dependence

7/14/2026

Summary

EY-Parthenon Estimates

EY-Parthenon estimates the US, eurozone and UK need $13.7 trillion, $9.1 trillion and $800 billion over ten years to cut Chinese supply-chain reliance.
The International Energy Agency projects China will supply 60 % of refined lithium and cobalt and about 80 % of battery-grade graphite by 2035.
The World Economic Forum and Oliver Wyman estimate annual fragmentation costs at $213 billion-$307 billion, roughly Chile’s GDP.

Summary

Researchers Package Vaccines

Researchers at Yi Seong Biopharma Institute in Shenyang are packaging rabies vaccines, highlighting Western reliance on Chinese pharma inputs.
In 2025 President Donald Trump set a 145% tariff on Chinese goods, after which China limited rare-earth exports and auto production nearly stopped.
China dominates active pharmaceutical ingredients, raising security concerns, while EY-Parthenon’s Mats Persson says partial decoupling on key areas is realistic.

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EY-Parthenon Estimates

EY-Parthenon estimates the US, eurozone and UK need $13.7 trillion, $9.1 trillion and $800 billion over ten years to cut Chinese supply-chain reliance.
The International Energy Agency projects China will supply 60 % of refined lithium and cobalt and about 80 % of battery-grade graphite by 2035.
The World Economic Forum and Oliver Wyman estimate annual fragmentation costs at $213 billion-$307 billion, roughly Chile’s GDP.

1 / 2