Drones and Soldier Equipment Drive Demand
A recent report by Benchmark Mineral Intelligence shows that global military battery demand reached 4.3 GWh in 2025, with drone batteries accounting for 40% of total demand, making them the largest single application. Soldier-portable equipment, including radios, GPS, night vision, and laser systems, represented 29% of demand. The report emphasizes that battery technology has become an indispensable element in modern warfare, directly influencing battlefield dynamics and operational effectiveness.
Since the outbreak of the war in Ukraine in 2022, the tactical role of drones has rapidly evolved from auxiliary reconnaissance tools to primary combat platforms. The report notes that China currently possesses the world’s largest and most vertically integrated drone industry, covering upstream sectors such as critical mineral extraction, battery production, and magnetic material supply. Modern drone warfare relies heavily on these Chinese-supplied components, creating a structural vulnerability in global military supply chains.
Battery Technology at the Heart of Geopolitical Competition
Bryan Bille, Benchmark Mineral Intelligence’s Lead Policy and Geopolitical Analyst, stated that battery technology has shifted from being solely an energy transition issue to a critical component of defense and security. He said, "From drones to soldier-portable equipment, batteries are now at the core of modern military capability and have become a key dual-use technology in US-China geopolitical competition." The report warns that any disruption in China’s supply chain would have immediate and significant consequences on global battlefields.
Currently, most military drones use nickel-cobalt-manganese (NCM) or lithium cobalt oxide (LCO) batteries. However, the report forecasts that high-nickel NCM batteries will dominate over the next decade. This battery chemistry offers higher energy density, meeting the stringent demands of military equipment for endurance and performance. Yet, the production of high-nickel NCM batteries also depends heavily on China’s critical mineral supply, further exacerbating supply chain risks.
US and Europe Accelerate Localization of Supply Chains
Will Roberts, Benchmark’s Automotive Research Lead, highlighted that drones have become the primary driver of growth in military battery demand, though strategic investments by militaries remain in the early stages. He said, "Major military powers are only beginning to recognize the importance of supply chain autonomy, and a wave of strategic investments in critical technologies and production capacity is expected to follow."
While military battery demand represents only a small fraction of the global battery market, its geopolitical sensitivity is increasingly pronounced. The challenge for the US and Europe lies in reducing dependence on Chinese supply chains without undermining production scaling. The report underscores that supply chain autonomy is not merely an economic issue but a priority for national defense security. As drones continue to expand their role in modern warfare, the security of battery supply chains will become a central element of national defense strategies.
The report does not provide a detailed breakdown of military battery demand by country or region for 2025, nor does it elaborate on other potential military battery technologies. However, as high-nickel NCM batteries become mainstream, energy density, safety, and supply chain resilience will emerge as key focus areas for nations worldwide.
