Legislation introduced to House would provide grants to U.S. battery makers

Last week, U.S. Representative Mike Doyle (D-PA) was joined by Representatives David B. McKinley, PE (R-WV), Marc Veasey (D-TX), Debbie Dingell (D-MI), and Tim Ryan (D-OH ) upon the introduction of the bipartisan Battery Material Processing and Component Manufacturing Act, HR 4864, which aims to strengthen the domestic battery manufacturing industry by providing grants for the construction or conversion of facilities for processing battery materials or manufacturing battery components .

“The US needs strong domestic supply chains to keep our industries safe and growing,” Congresswoman Doyle said. “This bipartisan legislation will ensure that the battery supply chain for electric vehicles, as well as homes, businesses and network storage is right here in America, creating high paying jobs. This legislation will grow our economy, create manufacturing jobs in communities that have lost them, help the US remain a leader in innovation and ensure our auto industry has a reliable domestic supply chain. This is the kind of investment we need to make to stay competitive globally, and I’m proud to have a great group of bipartisan leaders in this area.”

As the demand for batteries skyrockets and continues to rise due to the growth in electric vehicles and home and electricity storage, developing a domestic battery supply chain is critical.

“The US has relied on countries like China for far too long for the supply of essential minerals and rare earth elements,” said Representative McKinley. “This is a direct threat to our national security and energy security. This bipartisan legislation is an important step forward in ensuring a domestic supply of critical minerals essential for the production of batteries and battery components.”

Today, the US relies on international competitors for battery minerals and technologies as China has a stranglehold on all stages of the battery supply chain, which is achieved with poor labor and environmental standards. This is not just an economic security problem; it is a matter of national security. By investing in a robust battery supply chain, the US can create jobs, reduce emissions, improve our economic and national security, and provide innovative leadership in battery markets at home and abroad.

To capitalize on these opportunities, the Battery Material Processing and Component Manufacturing Act of 2021 will inject much-needed funding, in the form of shared-cost grants, into the midstream sectors of the battery supply chain. The bill would provide $10 billion to build a domestic battery supply chain. Funding for the grants is split between $3.5 billion for materials processing and $6.5 billion for component manufacturing and recycling.

Grants would fund demonstration and commercial facilities, as well as the conversion, retrofitting or expansion of existing facilities that process battery materials such as lithium and graphite, manufacture battery components such as anodes and cathodes, or recycle battery materials for reuse. In addition, the grants will be prioritized for projects that provide employment opportunities to people in low-income communities.

This legislation would not only improve our national security, but would also make the US more competitive in the global market and stimulate significant economic growth through the creation of new advanced manufacturing jobs.

You will find the text of the bill here.

A fact sheet can be found on the invoice here.

News report from Rep. doyle

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