§18741 Battery processing and manufacturing

Summary

Creates two federal grant programs and rules to grow U.S. battery supply chains. Within 180 days after November 15, 2021, the Secretary must set up a Battery Material Processing Grant Program (in the Office of Fossil Energy) and a Battery Manufacturing and Recycling Grant Program (in the Office of Energy Efficiency and Renewable Energy). The goals are to build U.S. processing and manufacturing, boost recycling, and reduce reliance on foreign competitors. Grants can pay for demonstration projects, new commercial plants, or retooling and expansion of existing plants. Minimum awards are $50,000,000 for demonstrations, $100,000,000 for new plants, and $50,000,000 for retooling. Each program may receive up to $3,000,000,000 for fiscal years 2022–2026, available until spent. Priority goes to U.S.-located and U.S.-owned applicants, North American intellectual property and content, and projects that do not use materials from a “foreign entity of concern.” The Secretary must give extra consideration to projects that create jobs in low- and moderate-income, rural, or fossil-job-loss communities, partner with universities or Tribes, and reduce greenhouse gas emissions. The Secretary must report to Congress no later than 1 year after November 15, 2021 and then every year on applications, awards, project purposes, and status. Defines key terms in one line each: “advanced battery” (a battery cell used in energy storage like EVs or the grid), “advanced battery component” (parts such as anodes, cathodes, electrolytes, enclosures), “battery material” (raw or processed minerals, metals, or chemicals used in battery parts), “eligible entity” (as defined elsewhere in law), “foreign entity of concern” (listed terrorist or sanctioned entities, foreign-controlled firms, or others the government finds harmful to U.S. security), “manufacturing” (the industrial and chemical steps to make batteries), “processing” (refining and treating raw materials), and “recycling” (recovering materials to reuse). The law also continues a Lithium‑Ion Battery Recycling Prize and authorizes $10,000,000 for Phase III in FY2022. Working with the EPA Administrator, the Secretary may award R&D and demonstration grants to improve battery reuse and recycling ($60,000,000 authorized for FY2022–2026), competitive grants to States and local governments for collection and reprocessing (with a 50% local match and $50,000,000 authorized for FY2022–2026), and grants to retailers to run free, regular battery take-back programs ($15,000,000 authorized for FY2022–2026). A task force must be formed to design an extended producer responsibility plan and report to Congress within 1 year of its start. The law lists who may apply for grants (universities, labs, governments, industry, recyclers, retailers, and consortia) and says it does not change the Mercury‑Containing and Rechargeable Battery Management Act.