BATT Coalition Supports Bipartisan Legislation to Bolster Domestic Battery Production
The legislation, co-sponsored by Reps. Gabe Evans (R-CO) and Raul Ruiz (D-CA), members of the House Energy and Commerce Committee, would increase from 10 percent to 25 percent the Section 45X Advanced Manufacturing Production Credit for the cost of processing electrode active precursor materials and electrode active materials.
The bill would also strengthen sourcing requirements for battery components to ensure we are taking more aggressive steps to reduce reliance on Chinese and other foreign sources and help to continue to spur the development of the robust domestic supply chains that are now a national imperative.
“If we are serious about building a sustainable and secure domestic supply chain for the critical components that power our national defense and very way of life, it is essential that we have policies that finally bring an end to our addiction to Chinese minerals and other battery materials,” said BATT Executive Director Samm Gillard. “This new legislation provides a powerful mix of incentives to reverse the overwhelming market disadvantages that U.S. companies still face. It will encourage American ingenuity and private investment, strengthen our economic competitiveness, and safeguard our national security.”
Among the key provisions of CMMSA 2.0:
Requires only electrode active materials, cells, and modules from nations not designated as Foreign Entities of Concern (FEOC) by 2027
Adds silicon and silicon composites to the list of battery critical minerals
Increases the Section 45X tax incentive for battery electrode active materials from 10 percent to 25 percent
Provides 100% tax credit eligibility for the production and processing of critical minerals until December 31, 2041
The proposed modifications to Section 45X are particularly important because they will clear up which materials are eligible for the tax credit and lay out a path to source these materials from free trade partners and no longer rely on adversarial nations. As the U.S. Geological Survey reported this month, the United States row relies solely on foreign imports for 16 critical minerals, and China is the top producer of at least half of them.
“We have made important progress in recent years in laying the foundation for a domestic battery supply chain and we applaud leaders in both parties for their commitment to these goals, but we must do more,” said BATT Policy Director Drew Ronneberg. “American companies have the best battery technology in the world and are pioneering the next generation of energy storage technologies. They can only be fully unleashed with a more comprehensive set of policies that will further empower U.S. industry to catch up and surpass China’s lock on the domestic market. CMMCA 2.0 will do just that.”
The BATT Coalition’s member companies commend Reps. Evans and Ruiz for their continued leadership and urge lawmakers in both parties to support swift passage of CMMSA 2.0.
"CMMSA 2.0 strengthens U.S. energy security by supporting domestic production of critical battery materials essential to American manufacturing and infrastructure,” said Carmen Rene, Chief Financial Officer of EnergySource Minerals. “By reinforcing incentives for U.S.-based supply chains and trusted sourcing, the bill helps reduce reliance on foreign producers. EnergySource Minerals supports this legislation because long-term energy leadership depends on producing essential materials responsibly here at home.”
“It is essential to our National Security to enable a domestic supply chain for battery materials, something Forge Nano has made a priority for many years,” added James Trevey, Chief Technology Officer of Forge Nano. “Forge Nano is excited to work with Rep. Evans on helping incentivize this critical industry and protect it from adversarial nations.”
The Battery Advocacy for Technology Transformation (BATT) Coalition is an industry coalition dedicated to increasing domestic production of raw materials and components for electric batteries. Follow us on LinkedIn.