The Research Institute for Democracy, Society and Emerging Technology (DSET) hosted a delegation from the U.S.-based think tank the Council on Foreign Relations (CFR) on April 16 for discussions on Taiwan’s energy resilience, maritime blockade and quarantine risks, and the security of drone supply chains.
Headquartered in New York, CFR is a bipartisan think tank focused on U.S. foreign policy and international affairs. The delegation was led by David Sacks, Fellow for Asia Studies, and included scholars of international relations as well as professionals from the business and investment sectors. During their visit to Taiwan, the delegation also met with Vice President Hsiao Bi-khim, Minister of Foreign Affairs Lin Chia-lung, and KMT Chairwoman Cheng Li-wen to exchange views on regional security issues.
In her opening remarks, DSET Director Tu Wen-ling noted that DSET and CFR co-hosted a closed-door discussion in New York last November on how Taiwan can strengthen its energy, defense, and societal resilience. She expressed appreciation for CFR’s hospitality during that visit and welcomed the opportunity to continue the dialogue in Taipei.
On energy security, the CFR delegation showed particular interest in Taiwan’s ability to respond to a potential blockade/ quarantine scenario in the Taiwan Strait. Lu Tsai-ying, Director of DSET’s Energy Resilience Program, explained that Taiwan remains highly dependent on imported energy—especially liquefied natural gas (LNG). Even limited disruptions at key maritime chokepoints could lead to supply delays and market volatility.
She further noted that China may be more likely to adopt a “selective blockade” approach—such as inspections or quarantine measures targeting specific energy vessels—rather than a full maritime blockade/quarantine, in order to reduce economic costs to itself.
To address such gray-zone pressure, Lu emphasized that Taiwan should continue expanding LNG receiving terminals and storage capacity, diversify supply sources from partners such as the United States and Australia, and further strengthen coast guard escort and emergency response capabilities.
Drone industry development and supply chain resilience were also major topics of discussion. DSET’s National Security Program noted that while Taiwan has strong R&D and manufacturing capabilities in the drone sector, companies still face significant costs and market uncertainty when attempting to enter the U.S. “Blue UAS” certification system. Even for Taiwanese firms that have already obtained certification, the U.S. government’s “Buy American” preference continues to raise barriers for international competitors.
In terms of military applications, Taiwan announced last year its plan to procure approximately 50,000 drones. However, the operational effectiveness of these systems remains to be tested in real-world scenarios. At the same time, Taiwan’s counter-drone defense capacity still requires significant improvement. While the legislature is planning to procure around 700 counter-UAS systems, this remains insufficient compared to the approximately 7,000 critical infrastructure sites across Taiwan that require protection.
On the battery supply chain for drones, DSET Energy Resilience Policy Analyst Angela Glowacki pointed out that lithium-ion batteries (NMC) used in military drones rely on critical minerals such as nickel, manganese, and cobalt, all of which are sourced through highly concentrated global supply chains.
Currently, around 50 percent of Taiwan’s drone battery market still depends on Chinese-made batteries. Although Taiwan’s domestic battery cell manufacturing capacity has improved, with self-sufficiency rising to approximately 10–20 percent over the past two years, local producers continue to face cost and scale disadvantages. From a national security perspective, she stressed, ensuring stable access to critical materials and battery supplies is essential.
DSET stated that it will continue publishing research on Taiwan’s energy security under blockade scenarios and the resilience of drone battery supply chains, with the goal of providing policy recommendations and strengthening Taiwan’s overall resilience against complex and evolving security challenges.
