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Battery Production Support: Increased Tax Credits and Local Sourcing

New rules increase tax credits for companies producing key battery components, such as electrode materials. This aims to encourage more production in the US and partner countries. This could mean more jobs in the battery manufacturing sector and greater independence in critical raw material supplies, potentially affecting the availability and prices of battery-powered products like electric vehicles.
Key points
Increased tax credit from 10% to 25% for manufacturers of battery electrode materials, potentially lowering production costs.
Introduction of a requirement that, starting in 2026, at least 70-80% of the value of critical minerals and battery components must originate from the US, free trade agreement countries, or be recycled in North America.
Exclusion from tax credits for components sourced from entities deemed a national security concern, aiming to strengthen supply chain security.
Expansion of the definition of electrode materials to include new substances like cobalt sulfate, lithium, or silicon, broadening the scope of products eligible for credits.
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Introduced
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Additional Information
Print number: 119_HR_3200
Sponsor: Rep. Ruiz, Raul [D-CA-25]
Process start date: 2025-05-05
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Critical Minerals and Manufacturing Support Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3200.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-05-05.

What are the main provisions?

Key points include:

  • Increased tax credit from 10% to 25% for manufacturers of battery electrode materials, potentially lowering production costs.
  • Introduction of a requirement that, starting in 2026, at least 70-80% of the value of critical minerals and battery components must originate from the US, free trade agreement countries, or be recycled in North America.
  • Exclusion from tax credits for components sourced from entities deemed a national security concern, aiming to strengthen supply chain security.
  • Expansion of the definition of electrode materials to include new substances like cobalt sulfate, lithium, or silicon, broadening the scope of products eligible for credits.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Ruiz, Raul [D-CA-25].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Economy Environment