31st Parliamentary Intelligence-Security Forum – Energy Security
Mr. Dave McMurtry, an investment fund manager focused on the lithium-ion battery supply chain, emphasized that developing a domestic Battery Energy Storage System (BESS) industry is critical to U.S. national security and energy independence. He explained that grid-scale battery storage is now essential to maintaining the stability and resilience of the U.S. electrical grid, the largest and most complex in the world particularly during peak demand periods when stored energy increasingly supplements traditional power plants.
McMurtry warned that the United States is heavily reliant on Chinese manufacturing, noting that China controls approximately 70% of global battery production and about 94% of lithium iron phosphate (LFP) chemistry. Over 90% of energy storage systems contain at least one Chinese component, raising serious supply chain and cybersecurity concerns. He highlighted reports of undocumented communication devices in imported energy equipment and pointed to increasing cyberattacks and expanded vulnerabilities due to cloud-based and remotely connected systems.
To mitigate these risks, he called for building a full domestic manufacturing ecosystem, maintaining tax incentives for U.S. production and R&D, diversifying battery chemistries beyond Chinese-dominated LFP, strengthening cybersecurity inspections and standards, and deepening supply chain partnerships with allies such as Japan, South Korea, Canada, and Australia. He concluded that battery energy storage is a strategic security priority essential for protecting national security, economic competitiveness, and technological leadership.
