Why a State Department Office Battling Disinformation Abroad Is Facing Closure

Summary

WSJ Tech News Briefing - Episode Summary

Title: Why a State Department Office Battling Disinformation Abroad Is Facing Closure
Host: James Rundle
Release Date: November 15, 2024

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1. Lithium-Ion Battery Safety: Addressing Fire Risks in Industrial Settings

Overview:
The episode opens with a discussion on the prevalent risks associated with lithium-ion batteries, particularly in industrial environments where large clusters of these batteries are used. James Rundle interviews WSJ reporter Stuart Condy to delve into the safety challenges and the innovative solutions companies are developing to mitigate these risks.

Key Points:

• Fire Hazards of Lithium-Ion Batteries:
  Stuart Condy explains that while lithium-ion batteries are generally safe, fires can occur and are exceptionally dangerous. These fires burn hotter than a blowtorch, making them challenging to extinguish. Conventional firefighting methods, like spraying water, can exacerbate the situation by causing lithium to split into oxygen and hydrogen, both of which are highly flammable, thereby fueling the fire further.
  Notable Quote:
  Stuart Condy [02:02]: “Spraying water on them can make the situation worse… you actually end up adding fuel to the fire, quite literally.”

• Engineering Solutions:
  To combat these fire risks, companies are exploring alternatives to lithium. Stuart mentions that using heavier, non-flammable metals in batteries can reduce fire hazards. Although this makes the batteries less lightweight, it enhances safety in large-scale storage applications.
  Notable Quote:
  Stuart Condy [02:49]: “If your battery doesn't need to be small or light, you can use heavier metals… making batteries even less prone to fire risk.”

• Industry Implementation:
  An example provided is Australia's Origin Energy, which has invested in Allegro Energy to install advanced battery systems at coal-fired power plants slated for closure. This initiative aims to test and potentially scale up safer battery technologies for broader industrial use.
  Notable Quote:
  Stuart Condy [03:55]: “Origin Energy has taken a 5% stake in Allegro Energy... they're going to test out the battery while the plant is operational.”

• Economic and Commercial Challenges:
  The transition to safer battery technologies faces economic hurdles. Stuart highlights that proving the viability of new technologies requires substantial investment and successful pilot projects to attract further funding and adoption. The competitive landscape demands that new solutions demonstrate clear advantages over existing alternatives.
  Notable Quote:
  Stuart Condy [04:39]: “You need to prove the use case first. No one's going to plow money into a project while there are cheaper or better proved alternatives.”

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2. Disinformation Threats and the Potential Closure of the Global Engagement Center

Overview:
The episode shifts focus to national security, examining the rising threats of disinformation from adversarial nations like Russia, China, and Iran. James Rundle speaks with national security correspondent Michael Gordon about the Global Engagement Center (GEC), an office within the State Department dedicated to countering foreign disinformation, which is now facing potential closure.

Key Points:

• Role and Function of the Global Engagement Center:
  Michael Gordon outlines that the GEC specializes in identifying and countering disinformation campaigns aimed at foreign audiences. Operating with a modest budget of approximately $60 million and staffed by 130 employees, the GEC collaborates closely with the National Security Agency to gather and analyze intelligence on disinformation activities.
  Notable Quote:
  Michael Gordon [06:57]: “It's a kind of David and Goliath situation… the US has stood up this activity to fight a pretty focused and determined campaign.”

• Political Controversies:
  The funding and mandate of the GEC have become contentious in domestic politics. Critics argue that efforts to curb foreign disinformation might infringe upon free speech and lead to censorship, especially when actions involve identifying and shutting down platforms disseminating false information. This debate has fueled calls for the center's closure.
  Notable Quote:
  Michael Gordon [07:21]: “In American domestic politics, there have been debates about whether efforts to curb Russian disinformation… may inadvertently trend into censorship and curb free speech.”

• Implications of Potential Closure:
  Scheduled for reauthorization on December 23rd, the GEC's future hangs in the balance as Congress deliberates. The timing is critical, occurring just weeks before President-elect Donald Trump's inauguration, with no clear stance from his transition team. The potential shutdown raises concerns about the US's capacity to effectively counter evolving disinformation tactics, especially with the rise of generative AI technologies enhancing the scale and sophistication of propaganda efforts.
  Notable Quote:
  Michael Gordon [09:50]: “The next few weeks are going to be decisive and seeing whether the mandate will be extended.”

• Impact of Generative AI on Disinformation:
  Michael emphasizes that generative AI has significantly amplified the ability of adversaries to produce and disseminate disinformation. This technological advancement lowers the barriers for creating convincing fake content, making it harder to distinguish between genuine and fabricated information.
  Notable Quote:
  Michael Gordon [10:00]: “Social media AI has enabled Russia and China to propagate their disinformation… to spread it very efficiently around the world.”

• Real-World Consequences:
  A poignant example highlighted is the disinformation spread in Africa, where false narratives about Western-funded public health initiatives have led to distrust and reluctance in adopting life-saving measures like vaccinations. This illustrates the tangible harm disinformation can inflict on public health and international relations.
  Notable Quote:
  Michael Gordon [10:30]: “They spread the disinformation that these are diabolical Pentagon biological warfare experiments… dissuaded Africans from getting the public health care they need.”

• Achievements of the GEC:
  Despite challenges, the GEC has had notable successes in identifying and exposing disinformation campaigns. For instance, during the first Trump administration, it played a significant role in countering Russian narratives that undermined public trust in COVID-19 vaccines like Moderna and Pfizer.
  Notable Quote:
  Michael Gordon [11:17]: “When you expose the hidden hand behind it… it diminishes its effectiveness.”

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Conclusion

The episode of WSJ Tech News Briefing provides an in-depth exploration of two critical issues in the tech and national security landscape. The discussion on lithium-ion battery safety underscores the ongoing efforts and challenges in making industrial technologies safer, highlighting the delicate balance between innovation and risk management. Simultaneously, the examination of disinformation threats and the potential closure of the Global Engagement Center sheds light on the vulnerabilities of information integrity in the digital age and the political complexities surrounding national security initiatives. Through expert insights and detailed analysis, the episode offers listeners a comprehensive understanding of these pressing contemporary issues.

Transcript

[Goldman Sachs Podcast Host]

Exchanges, the Goldman Sachs podcast featuring exchanges on rates, inflation and US Recession. Risk exchanges on the market impact of AI for the sharpest analysis on forces driving the markets and the economy, count on exchanges between the leading minds at Goldman Sachs. New episodes every week. Listen now.

[James Rundle]

Welcome to Tech News briefing. It's Friday, November 15th. I'm James Rundle for the Wall Street Journal. When lithium ion batteries explode, they can burn hotter than a blowtorch. Clusters of batteries can present a significant safety risk. But some companies believe they have the problem cracked. And then U.S. officials warn that disinformation threats are more rampant and dangerous than ever before. So why is a State Department office built to combat disinformation threats from Russia and China facing closure? Our national security correspondent Michael Gordon joins us to discuss. But first, lithium ion batteries are a mainstay of modern technology, powering everything from laptops to industrial machinery. But when they catch fire, it can become a huge problem, especially when dozens are placed close together. How are companies trying to prevent that from happening? By adding water. Millions of dollars have been poured into the problem, but solutions aren't as easy as it sounds Here. Now to explain some of the challenges around the tech is WSJ reporter Stuart Condy. Stuart, how common is it for lithium ion batteries to catch fire within these industrial settings? And how much of a problem can this cause?

[Stuart Condy]

Well, it's not common. That's the first thing to say. It is generally very safe technology, but the problem is it does happen. And when it does happen, these fires burn super hot, and you often can't put them out with water. In fact, spraying water on them can make the situation worse. Lithium will split water into oxygen and hydrogen, its component parts. And hydrogen, of course, is a highly explosive gas, and oxygen burns. So you actually end up adding fuel to the fire, quite literally.

[James Rundle]

It burns that hot that it actually separates them into component?

[Stuart Condy]

Yes, that's correct. So what happens with these lithium fires is often it's about containment. Firefighters will make the surrounding area cooler. They will add water to surrounding units or surrounding infrastructure and just let the fire burn out, which is what has happened in fires in both the US And Australia.

[James Rundle]

So what are some of the solutions that people are coming up with?

[Stuart Condy]

Well, lithium is small and light, but it's also expensive. And as we say, it doesn't respond well to high temperatures. So if your battery doesn't need to be small or light, you can use heavier metals in your battery. And if you're using these heavier metals, this also allows you to use water, which, of course is non flammable, making batteries even less prone to fire risk.

[James Rundle]

How challenging of an engineering problem is this?

[Stuart Condy]

Well, it's not actually that challenging given that this technology has been around for a long time. Car batteries have water based electrolytes. The issue is that batteries have been focused on becoming smaller and lighter for portable use in your telephone, in your electric bike, in your scooter. But now we have the need for batteries in large scale storage projects for solar, for wind. We can actually look at making them larger and building the capacity rather than making them portable.

[James Rundle]

Can you give us an example of a company working on this tech?

[Stuart Condy]

The technology is sufficiently attractive for Australia's largest power company to take an interest. Origin Energy has taken a 5% stake in Allegro Energy here and is in the process of installing one of its batteries at a coal fired power plant that is due for closure. The idea is that they're going to test out the battery while the plant is operational and if it is successful, then potentially roll out. Elsewhere.

[James Rundle]

In your story you detail the challenges that a number of companies who have developed this tech are facing. But there is keen interest from government, from industry. So why is it a challenge for companies to get to a point where they can produce this tech an economically sustainable way?

[Stuart Condy]

It boils down to the same thing as it does with a lot of technology is that you need to prove the use case first. You need to get a project built and operational before commercializing. No one's going to plow money into a project while there are cheaper or better proved alternatives. Basically, it boils down to competition. But these companies are hoping that, such as with Allegro Energy being backed by Australia's largest power producer, that they can get these test cases out there and generate interest that way.

[James Rundle]

That was our reporter, Stuart Conde. Coming up, Generative AI is supercharging propaganda efforts from Russia, China and Iran. We'll find out why a State Department office is set up to counter disinformation as facing closure. That's after the break.

[Goldman Sachs Podcast Host]

Technology can be a catalyst for compelling customer and employee experiences. On the third episode of techfluential, Deloitte's Ludi Lorenzo talks with Sabina Ewing, SVP of Business and Technology Services and CIO at Abbott and Linda Jojo, EVP and Chief Customer Officer at United, to learn how they are redefining technology's role in elevating the customer experience. Where technology and influence converge, new opportunities can emerge. That's techfluential, a podcast from Deloitte and custom content from WSJ.

[James Rundle]

Government officials have warned that Disinformation from Russia, China and Iran is at an all time high. The advent of generative AI has also increased the ability of foreign information operations to reach scales not seen before. Against this backdrop, the Global Engagement Center, a State Department office established to counter precisely this threat, may shut down just weeks before President elect Donald Trump takes office. WSJ national security correspondent Michael Gordon tells us about the reasons behind its possible closure and why this is happening at a crucial time. Michael joins us now. During the election, of course, U.S. officials warned that the public is now facing a deluge of disinformation and misinformation threats. Given that, why is the center facing potential closure now?

[Michael Gordon]

It's important to note that what the center does is it focuses exclusively on disinformation efforts abroad and encountering them. So what, it's targeted at foreign audiences, not that American audiences. And it works hand in glove with the National Security Agency, which is one of the premier US Spy agencies, which gathers the information and declassifies it so the State Department office can use it. This office has a budget of about $60 million and about 130 employees. It's minuscule compared to the Goliath like efforts that are being undertaken by China and Russia. So yes, it works with US Intelligence community, which is well funded. But this is a kind of a David and Goliath situation where the US has stood up this activity and to fight a pretty focused and determined campaign on the part of information campaigns on the part of its adversaries. But the reason it's controversial is in American domestic politics, there have been debate about whether efforts to curb Russian disinformation in the United States may inadvertently trend into censorship and curb free speech. And we're identifying platforms, say on X that are carrying Russian information, whether it's useful to shut down those particular accounts or whether shutting them down is an act of censorship. The Global Engagement center doesn't delve into that. But because it's involved in the broader enterprise of fighting disinformation, it's been caught up in that political debate.

[James Rundle]

And it requires reauthorization, correct?

[Michael Gordon]

Yeah, it was authorized for seven years. Its mandate expires on December 23rd. And unless Congress reauthorizes it, it's going to have to shut its doors there. And there's an effort afoot in the Congress to work out the compromise, but it's not clear whether one will be reached.

[James Rundle]

This is also happening a few weeks before President elect Trump takes office. Has there been any indication from his transition team as to what they think about the center and whether they want it to be reauthorized?

[Michael Gordon]

No, there's been none. I reached out to them and they didn't respond. Elon Musk has been critical of the center in the past and we reached out to X and we reached out to Musk, but he generally doesn't respond to Inquisitor for comment and he didn't in this instance. On the other hand, there is Republican support for it in the Senate because the Republicans played a role in creating the institution in the first place. First and foremost because they see the need to counter Chinese disinformation and other foreign information warfare. The next few weeks are going to be decisive and seeing whether the mandate will be extended.

[James Rundle]

Is this coming at a dangerous time for disinformation globally with the advent of generative AI lowering the barrier for entry, allowing adversaries to increase their output and everything else?

[Michael Gordon]

Yeah. I mean, technologically social media AI has enabled Russia and China to propagate their disinformation, which really has a long history on the part of those adversaries, and to spread it very efficiently around the world. I mean, here's a recent example. There are a number of Western funded public health projects in Africa which are intended to prevent Africans from getting malaria and other diseases through vaccinations. Moscow, through its disinformation efforts and involving African organizations and front companies it set up, spread the disinformation that these are diabolical Pentagon biological warfare experiments and that they should be shunned. So this is an activity that not only was intended to create propaganda about the United States, but also dissuaded Africans from getting the public health care they need. And so this is the kind of threat that the US is up against in Africa, in the Balkans and South America and elsewhere around the world.

[James Rundle]

Have there been any notable successes from the center in exposing this kind of information or influence operation in the past?

[Michael Gordon]

Exposure is sanitizing in and of itself. The way Russian disinformation works is they don't do it in their own name. They create a front organization, a publication, they find a local outlet, let's say in a Spanish speaking country, it would be a Spanish news outlet. They propagate these assertions through them about secret biological warfare labs or whatever they're pushing. And when you expose the hidden hand behind it, that these are really not repertorial efforts by local journalists, but really directed activity from Moscow, Beijing that obviously diminishes its effectiveness. This office, by the way, existed and did some significant work under the first Trump administration when Mike Pompeo was Secretary of state. And in fact, during that period, it did work on efforts by the Russians to suggest that the Moderna and Pfizer vaccines intended to counter COVID 19 were somehow untested and dangerous to use.

[James Rundle]

That was our national security correspondent, Michael Gordon. And that's it for Tech News Briefing. Today's show was produced by Julie Chiang. I'm your host, James Rundle. Additional support this week from Cordelia James. Jessica Fenton and Michael Laval wrote our theme music. Our supervising producer is Catherine Milsop. Our development producer is Aisha. Al Muzlim. Scott Soloway and Chris Sinsley are the deputy editors. And Philana Patterson is the Wall Street Journal's head of news article. We'll be back this afternoon with TMB Tech Minute. Thanks for listening.