Supply chain competitiveness index: Evaluating U.S. and China's lithium-ion battery industries

Abstract

As climate change intensifies and geopolitical tensions rise, clean technology has become a key arena for industrial policy competition, particularly between the United States and China. Lithium-ion (Li-ion) batteries, which are essential for renewable energy storage and electric vehicles, exemplify the strategic stakes of this competition. Existing supply chain analyses often cater to private sector needs, leaving gaps in tools accessible to policymakers and researchers. This paper introduces the Supply Chain Competitiveness Index (SCCI), a novel framework that leverages open-source data to assess supply chain competitiveness and resilience through three key indicators: domestic production capacity, import dependence, and innovation. The SCCI results reveal critical vulnerabilities and help to provide actionable insights to strengthen supply chain resilience, enhance economic competitiveness, and accelerate the green energy transition. Furthermore, it establishes a scalable foundation for evaluating other critical clean technology supply chains, offering practical tools for navigating the intersection of climate action and global competition.