US battery oversupply offers an opportunity to expand into new markets, counter Chinese dominance, and secure long-term energy competitiveness. 

The world continues to ramp up production of electric vehicles (EVs) and related infrastructure, shipping over 3.2 million EVs globally in 2024. China comprised 40 percent of these exports, dominating the global market. The United States, which imposed an effective 100 percent tariff on Chinese electric vehicles in May 2024, remained a net importer of EVs, largely from Mexico through US original equipment manufacturers (OEMs). The United States’ main export market was Canada. Considering the substantial changes made so far in 2025 by the Trump administration, from raising tariffs on Canada and Mexico to the removal of EV tax credits, which incentivized domestic production, the calculus for a US strategic economic outlook has undergone a drastic transformation. Additionally, the United States is engaged, both rhetorically and practically, in an economic competition with China regarding global market control and influence, although it does not have to be this way.

US-China Competition

As the two economies have, each in its own way, sought to gain a competitive edge over global supply chains, the........

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