National Resilience Score: 85/100 — High Resilience
Framed as: Dual-Use Implications for National Resilience
I. Civilian & Military Applications
Energy storage and battery technologies are pivotal in both civilian and military sectors, serving as critical enablers for a wide array of applications. In the civilian domain, these technologies underpin the operation of electric vehicles (EVs), renewable energy integration, and portable electronic devices. The global EV market has experienced exponential growth, with companies like Tesla Inc. leading the charge in developing high-performance battery systems. (en.wikipedia.org) Additionally, advancements in battery energy storage systems (BESS) have facilitated the integration of renewable energy sources into the power grid, enhancing grid stability and reliability. (en.wikipedia.org) In the military sector, energy storage solutions are integral to powering advanced equipment such as night-vision devices, communication systems, and autonomous vehicles. The U.S. Army, for instance, has been actively developing rechargeable batteries capable of operating in extreme temperatures to support soldiers in diverse environments. (army.mil) Moreover, specialized military batteries, like the Military High Voltage Battery System developed by Epsilor Electric Fuel Ltd., provide high energy density and resilience, meeting the stringent demands of defense applications. (idstch.com) The convergence of civilian and military needs often leads to competition for the same supply chains, particularly concerning critical materials like lithium and rare earth elements. This competition can result in supply bottlenecks and increased costs, impacting both sectors’ ability to procure necessary components. Allied nations, including the United States, China, and members of the European Union, are at the forefront of deploying advanced energy storage solutions, investing heavily in research and development to maintain technological leadership. Conversely, adversaries such as China have leveraged their dominance in rare earth element processing to gain strategic advantages, influencing global supply chains and geopolitical dynamics.
II. Rare Earth & Critical Material Dependencies
Energy storage and battery technologies are heavily reliant on critical minerals and rare earth elements, which are essential for manufacturing high-performance batteries. Key materials include lithium, cobalt, nickel, neodymium, and dysprosium. As of 2025, China refines over 90% of the global supply of rare earth elements, including neodymium and dysprosium, which are crucial for producing strong permanent magnets used in electric motors and other electronic devices. (apnews.com) The United States imports more than 80% of its rare earth elements, predominantly from China, creating a significant dependency on foreign sources. (apnews.com) This reliance poses strategic vulnerabilities, as disruptions in supply chains—due to geopolitical tensions, trade conflicts, or export restrictions—can severely impact the production of energy storage systems and related technologies. In response to these challenges, the U.S. has initiated efforts to diversify its supply sources and enhance domestic production capabilities. For instance, in October 2025, the U.S. and Australia signed a deal to invest at least $1 billion each in projects aimed at securing rare earths and other critical minerals necessary for clean energy and military applications. (en.wikipedia.org) Additionally, companies like Vulcan Elements, founded in 2023, are working to establish domestic production of rare earth magnets, with a production capacity of 10 metric tons per year as of 2025. (en.wikipedia.org) However, substituting these critical materials remains challenging due to their unique properties and performance characteristics. Research into alternative materials and battery chemistries is ongoing, but widespread adoption of substitutes is not yet realized.
III. Infrastructure Hardening Implications
Energy storage and battery technologies play a crucial role in strengthening critical infrastructure by enhancing resilience and reliability across various sectors. In the power grid, large-scale battery energy storage systems (BESS) provide a means to store excess energy generated from renewable sources, such as solar and wind, and release it during peak demand periods or when generation is low. This capability helps stabilize the grid, reduce the risk of blackouts, and integrate renewable energy more effectively. For example, as of 2025, China has installed over 100 GW of battery storage capacity, significantly bolstering its grid stability. (en.wikipedia.org) In the military domain, advanced battery technologies are essential for powering equipment that operates in diverse and challenging environments. The U.S. Army’s development of rechargeable batteries capable of functioning in extreme temperatures ensures that soldiers have reliable power sources for their devices, enhancing operational effectiveness. (army.mil) However, the integration of these technologies also introduces new vulnerabilities. The reliance on complex supply chains for critical materials, such as rare earth elements, exposes infrastructure to risks from geopolitical tensions and trade disputes. Additionally, the rapid deployment of energy storage systems can create new attack surfaces, making them potential targets for cyberattacks or physical sabotage. To mitigate these risks, investments in cybersecurity measures, supply chain diversification, and the development of resilient infrastructure are imperative. Prioritizing the integration of energy storage solutions that offer both performance and security benefits will yield the highest return in terms of infrastructure hardening.
IV. Energy Resilience Assessment
Energy storage and battery technologies are pivotal in enhancing energy resilience by providing solutions that support both centralized and distributed energy systems. These technologies enable the storage of energy during periods of low demand or high generation, which can then be utilized during peak demand or when generation is insufficient, thereby reducing dependency on centralized power grids and enhancing energy security. The global energy transition towards renewable sources like solar and wind has increased the need for efficient energy storage solutions to address the intermittent nature of these sources. As of 2025, the average world system price for battery energy storage systems was around $120/kWh, reflecting a significant decrease from previous years and indicating a growing market adoption. (en.wikipedia.org) In the United States, the installation of 12.3 GW / 37.1 GWh of battery storage in 2024 underscores the commitment to enhancing energy resilience through large-scale storage solutions. (en.wikipedia.org) However, the performance of these technologies under grid stress or disruption scenarios remains a critical consideration. While energy storage systems can provide backup power during outages, their effectiveness is contingent upon factors such as capacity, discharge duration, and the ability to integrate with existing infrastructure. Pairing energy storage systems with renewable energy sources can further enhance resilience by creating microgrids capable of operating independently from the main grid during emergencies. This approach not only supports energy independence but also contributes to the broader goal of reducing carbon emissions and promoting sustainable energy practices.
V. Key Findings & National Resilience Implications
Energy storage and battery technologies are integral to both civilian and military applications, offering significant benefits in terms of operational efficiency and resilience. However, the heavy reliance on critical materials, particularly rare earth elements, introduces strategic vulnerabilities due to supply chain dependencies and geopolitical dynamics. To mitigate these risks, it is essential to invest in domestic production capabilities, diversify supply sources, and develop alternative materials and battery chemistries. Additionally, while energy storage systems enhance infrastructure resilience, they also present new vulnerabilities that require robust cybersecurity measures and infrastructure hardening strategies. Balancing the advantages of energy storage technologies with proactive risk management is crucial for maintaining national resilience. The overall national resilience contribution score for energy storage and battery technologies is 85, reflecting their substantial role in enhancing resilience across various sectors. The top three vulnerability areas that must be addressed include: 1) Dependency on critical materials and supply chain vulnerabilities; 2) Integration of new technologies introducing potential attack surfaces; and 3) Performance under grid stress or disruption scenarios. Investment priorities for maximum resilience return should focus on: 1) Developing domestic production capabilities for critical materials; 2) Enhancing cybersecurity measures for energy storage systems; and 3) Integrating energy storage solutions with renewable energy sources to create resilient microgrids. Allied cooperation is essential in sharing best practices, standardizing technologies, and ensuring a stable supply of critical materials. However, certain aspects, such as domestic production of critical materials and tailored infrastructure solutions, remain non-negotiable for national resilience. If a peer adversary gains dominant control of energy storage and battery technologies, it could leverage this advantage to disrupt global supply chains, influence energy markets, and gain strategic leverage, thereby compromising national resilience.
This was visible months ago due to foresight analysis.
