BATT Lauds Bipartisan Bill to Expand Critical Materials Tax Credit
The BATT Coalition supports swift passage of the bipartisan Critical Minerals and Manufacturing Support Act (CMMSA) to spur significant new growth in a domestic battery supply chain that is central to our national security and energy independence.
The legislation, introduced by Reps. Raul Ruiz (D-CA) and Rep. Gabe Evans (R-CO), members of the House Energy and Commerce Committee, would increase from 10 percent to 25 percent the Section 45X Advanced Production Tax Credit for the cost of processing electrode active precursor materials and electrode active materials from geological sources or waste products.
The bill would also strengthen sourcing requirements for battery components, making critical minerals and materials extracted or processed in the United States or its free trade partners, or recycled and reintegrated into the North American supply chain, eligible for the tax credits. That would bring it in line with the sourcing requirements contained in the Section 30D New Clean Vehicle Credit currently enshrined in law.
“The BATT Coalition commends Dr. Ruiz and Congressman Evans for their leadership in ensuring that the strides our industry has taken continue to build a robust domestic industry that is not only crucial to our energy independence but will ensure we have the most cutting-edge technologies to power our weapon systems,” said BATT Executive Director Samm Gillard. “Passage of the Critical Minerals and Manufacturing Act will help grow the seeds we have planted to compete on an even playing field with China and outstrip our competitors in what is a global race for the future.”
Bolstering the Section 45X tax credit has been a central objective of the BATT Coalition since its inception in August 2024.
“This is one of the most promising ways to further reduce our reliance on foreign entities of concern and expand the incentives to invest in a sustainable domestic market across the battery supply chain, from upstream production of raw materials to the manufacture of battery components and battery recycling,” said BATT Policy Director Drew Ronneberg. “Congress should seize upon this sensible approach to ensure America leads rather than follows.”
The BATT Coalition’s 14 member companies strongly back the bill and are similarly urging Congress to take immediate action to ensure its passage this year.
"We extend our sincere gratitude to Congressman Ruiz and Evans for his unwavering commitment and dedicated efforts to advancing a robust domestic critical minerals supply chain," said Carmen Rene, Chief Financial Officer of Energy Source Minerals (ESM). "This legislation provides essential security and incentives for projects like ours, which are at the forefront of securing a sustainable and abundant supply of American lithium and other critical minerals vital to strengthening our energy infrastructure and national security."
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.