Two parallel enforcement actions in June made the supply chain environment around defense batteries and drones explicitly bilateral. DoD's June 8 expansion of the 1260H Chinese military companies list to 188 entities added three battery producers: BYD, CALB Group, and EVE Energy. Direct DoD contracting with all three is barred as of June 30. Indirect procurement of products containing their components is barred starting June 2027. Any defense-adjacent BOM with CALB or EVE cells now carries a compliance clock.
China's June 22 action was entity-specific and immediate. MOFCOM placed 10 U.S. firms on its export control list, barring transfer of China-origin dual-use items to them by any party worldwide. The targets include Red Cat Holdings and subsidiary Teal Drones, both BlueUAS-cleared drone platforms with active DoD and allied procurement. MP Materials, operator of the only active U.S. rare-earth mine, and USA Rare Earth, building domestic mine-to-magnet capacity, are also listed.
The MOFCOM restriction is not a commodity-class control. It does not modify China's suspended lithium battery export controls (Decision No. 70, expiring November 10). It targets named companies. But the extraterritorial scope covers any organization in any country transferring China-origin dual-use items to the 10 entities, which compresses sourcing options for firms already positioned as alternatives to Chinese supply. A separate Finance Ministry action on the same day excluded 46 U.S. defense firms from Chinese government procurement, including Shield AI, Anduril, and Edge Autonomy.
Battery makers added to 1260H: BYD, CALB Group, EVE Energy. Direct DoD contracting barred June 30, 2026. Indirect (component-level) barred June 2027.
1260H is not sanctions. No OFAC restrictions, no commercial transaction ban for non-DoD buyers. Designation bars DoD procurement only.
MOFCOM 10-entity list (June 22, immediate): Red Cat Holdings, Teal Drones (Red Cat subsidiary), Jaia Robotics, IMSAR, AVEOX, Ball Aerospace, Oshkosh Defense, L3Harris Maritime, MP Materials, USA Rare Earth.
Scope: Dual-use items including drones, robotic hardware/software. Extraterritorial: bars any party worldwide from transferring China-origin items to named entities.
Red Cat/Teal exposure: FANG and Teal 2 hold BlueUAS certification. Black Widow ordered by a NATO ally via NSPA (March 2026). Battery cell supplier and component provenance for these platforms are not publicly disclosed.
MP Materials: Operates Mountain Pass, sole active U.S. rare-earth mine. Now restricted from receiving China-origin dual-use items and potentially processing inputs.
List previously withdrawn: Pentagon published a near-identical 1260H expansion in February 2026, retracted it without explanation, then reposted in June with ~188 entities (prior count: 134).