25th Parliamentary Intelligence-Security Forum – Global Supply Chain
Ms. Diana Furchtgott-Roth, Director of the Center for Environment, Climate, and Energy at The Heritage Foundation, addressed global supply chain vulnerabilities associated with electric vehicles (EVs), asserting that Western EV mandates are fostering perilous dependence on China.
She emphasized that China is responsible for approximately 80% of the global production of EV batteries and holds a dominant position in battery manufacturing through subsidies, low-cost energy, and state-backed capital. Prominent Chinese firms such as CATL and BYD are expanding their global presence, including into Latin America.
Ms. Furchtgott-Roth contended that policies that phase out gasoline-powered vehicles by 2035 constitute “self-inflicted wounds” as they augment reliance on Chinese battery supply chains. She highlighted that battery production necessitates extensive mining of lithium, cobalt, graphite, nickel, and copper, yet the United States and Europe restrict domestic mining while China secures mineral resources in Africa and other regions.
She also criticized climate policies such as the Inflation Reduction Act, alleging that China benefits from related subsidies. She argued that eliminating fossil fuel use in the United States would have minimal impact on global temperatures, particularly while China continues to construct coal plants.
Her primary recommendations to legislators include:
- Revoke EV mandates and permit consumer choice
- Expand the deployment of clean natural gas and nuclear power
- Support mining and mineral development outside China
- Strengthen partnerships with African and Latin American nations
She concluded that Western governments can mitigate dependence on China by modifying their own policies rather than accelerating EV mandates that consolidate Chinese dominance in global supply chains.
