§18741 Battery Processing and Manufacturing

Summary

Creates federal programs and actions to grow U.S. capacity for battery material processing, battery and battery-component manufacturing, and recycling. The Secretary must set up two grant programs within 180 days after November 15, 2021 — one in the Office of Fossil Energy for battery material processing, and one in the Office of Energy Efficiency and Renewable Energy for manufacturing and recycling. Key definitions: advanced battery (a cell used in vehicles or the electric grid), advanced battery component (parts such as anodes, cathodes, electrolytes, enclosures, cells), battery material (raw or processed minerals/chemicals used in components), eligible entity (entities listed elsewhere in law), foreign entity of concern (groups on terrorist or sanctions lists, tied to certain foreign governments, or judged by U.S. officials to harm national security), manufacturing (industrial and chemical production steps), processing (refining like treating, baking, coating), and recycling (recovering materials for reuse). Grants must support demonstration projects, building new commercial facilities, or retooling existing U.S. facilities. Minimum grant amounts are $50,000,000 for demonstrations, $100,000,000 for new commercial facilities, and $50,000,000 for retooling or expanding existing facilities. The Secretary must give priority to U.S.-based and U.S.-owned applicants, those using North American intellectual property, consortia, and projects that will not use materials from a foreign entity of concern, while also considering workforce benefits, tribal partnerships, emissions and energy efficiency, and supply-chain logistics. Each of these two programs is authorized $3,000,000,000 for fiscal years 2022 through 2026, to remain available until spent. The Secretary must report to Congress no later than 1 year after November 15, 2021, and then yearly, on applications received, grants made and amounts, project purposes and status, and other relevant information. Adds more recycling work and prizes. The Secretary, with the EPA Administrator where noted, will award multiyear R&D and demonstration grants to develop better battery reuse and recycling methods, recover critical minerals, improve design for recycling, protect worker and community health, handle waste safely, protect data privacy, and make recycling cost-effective. Eligible grant recipients include colleges, labs, government research agencies, nonprofits, industry, recyclers, retailers, and consortia. The R&D grants are authorized $60,000,000 for fiscal years 2022 through 2026. The Secretary will also give competitive grants to States and local governments to build or improve battery collection and recycling programs; those projects must share 50 percent of costs from non-Federal sources and the program has $50,000,000 authorized for fiscal years 2022 through 2026, with a report to Congress due not later than 2 years after November 15, 2021 and annually after. Retailers can get competitive grants to set up free, regular, and convenient battery take-back systems; $15,000,000 is authorized for fiscal years 2022 through 2026. The Department will continue the Lithium‑Ion Battery Recycling Prize and is authorized $10,000,000 for Phase III for fiscal year 2022. A task force will be formed to design an extended producer responsibility framework and must report its recommendations within 1 year after it is convened. The law also defines covered batteries for these programs: a primary (nonrechargeable) battery weighing not more than 4.4 pounds, and a rechargeable battery weighing not more than 11 pounds with a rating not more than 300 watt‑hours (excluding batteries with free liquid electrolyte or unsealed lead‑acid batteries). Nothing in these rules changes the Mercury‑Containing and Rechargeable Battery Management Act.