What does Preamble of Critical Minerals and Manufacturing Support Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment concerns modifications to the advanced manufacturing credit. The focus of the modifications is with respect to the production of battery components.

What does SHORT TITLE. of Critical Minerals and Manufacturing Support Act do?

This bill is formally titled the Critical Minerals and Manufacturing Support Act.

What does MODIFICATION OF ADVANCED MANUFACTURING PRODUCTION CREDIT of Critical Minerals and Manufacturing Support Act do?

This section modifies the Advanced Manufacturing Production Credit, specifically relating to battery production. It increases the credit amount for electrode active materials from 10% to 25% under Section 45X(b)(1)(J) of the Internal Revenue Code. The definition of production costs for electrode active materials now includes the cost of raw materials, including material extraction from geological sources or waste products. It establishes sourcing requirements for qualifying battery components and applicable critical minerals, requiring a minimum percentage of materials to be extracted or processed in the United States or countries with which the U.S. has a free trade agreement, or recycled in North America. These percentages increase over time, starting at 70% in 2026. It also requires a minimum percentage of constituent elements, materials, and subcomponents to be produced, manufactured, or assembled in North America, also increasing over time from 70% in 2026 to 100% after 2028. The credit is disallowed for qualifying battery components involving materials extracted, processed, or recycled by a 'foreign entity of concern' as defined in the Infrastructure Investment and Jobs Act. The definition of 'electrode active material' is expanded to include electrode active precursor materials, binders, and solid state electrolytes. Silicon used as an electrode active material in battery anodes is designated as an applicable critical material. These amendments apply to components produced and sold after December 31, 2025.

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Critical Minerals and Manufacturing Support Act

Last updated: 5/5/2025 · Introduced: 5/5/2025

Author: Raul Ruiz (D-CA)

TL;DR (AI)

This bill increases the Advanced Manufacturing Production Credit from 10% to 25% for the production of electrode active materials used in batteries.
It establishes escalating sourcing requirements for battery components and critical minerals, mandating a minimum percentage of materials be extracted, processed, or recycled in the United States, free trade partners, or North America.
The bill disallows the credit for battery components using materials sourced from entities deemed a 'foreign entity of concern' and expands the definition of 'electrode active material' to include related precursors and electrolytes.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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