42 USC 18741 - Battery processing and manufacturing

View all text of Subchapter II [§ 18741 - § 18744]

§ 18741. Battery processing and manufacturing

(a) DefinitionsIn this section:

(1) Advanced battery

(2) Advanced battery component

(A) In general

(B) Inclusions

(3) Battery material

(4) Eligible entity

(5) Foreign entity of concernThe term “foreign entity of concern” means a foreign entity that is—

(A) designated as a foreign terrorist organization by the Secretary of State under section 1189(a) of title 8;

(B) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the “SDN list”);

(C) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation (as defined in section 2533c(d) 1

1 See References in Text note below.

of title 10);

(D) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under—

(i) chapter 37 of title 18 (commonly known as the “Espionage Act”);

(ii) section 951 or 1030 of title 18;

(iii) chapter 90 of title 18 (commonly known as the “Economic Espionage Act of 1996”);

(iv) the Arms Export Control Act (22 U.S.C. 2751 et seq.);

(v) section 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274, 2275, 2276, 2277, and 2

2 So in original. Probably should be “or”.

2284);

(vi) the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.); or

(vii) the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or

(E) determined by the Secretary, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States.

(6) Manufacturing

(7) Processing

(8) Recycling

(b) Battery material processing grants

(1) In general

(2) PurposesThe purposes of the program are—

(A) to ensure that the United States has a viable battery materials processing industry to supply the North American battery supply chain;

(B) to expand the capabilities of the United States in advanced battery manufacturing;

(C) to enhance national security by reducing the reliance of the United States on foreign competitors for critical materials and technologies; and

(D) to enhance the domestic processing capacity of minerals necessary for battery materials and advanced batteries.

(3) Grants

(A) In generalUnder the program, the Secretary shall award grants to eligible entities—

(i) to carry out 1 or more demonstration projects in the United States for the processing of battery materials;

(ii) to construct 1 or more new commercial-scale battery material processing facilities in the United States; and

(iii) to retool, retrofit, or expand 1 or more existing battery material processing facilities located in the United States and determined qualified by the Secretary.

(B) Amount limitationThe amount of a grant awarded under the program shall be not less than—

(i) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(i);

(ii) $100,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(ii); and

(iii) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(iii).

(ii) take into consideration whether a project—(I) provides workforce opportunities in low- and moderate-income communities;(II) encourages partnership with universities and laboratories to spur innovation and drive down costs;(III) partners with Indian Tribes; and(IV) takes into account—(aa) greenhouse gas emissions reductions and energy efficient battery material processing opportunities throughout the manufacturing process; and(bb) supply chain logistics.

(4) Authorization of appropriations

(1) In general

(2) Purpose

(3) Grants

(A) In generalUnder the program, the Secretary shall award grants to eligible entities—

(i) to carry out 1 or more demonstration projects for advanced battery component manufacturing, advanced battery manufacturing, and recycling;

(ii) to construct 1 or more new commercial-scale advanced battery component manufacturing, advanced battery manufacturing, or recycling facilities in the United States; and

(iii) to retool, retrofit, or expand 1 or more existing facilities located in the United States and determined qualified by the Secretary for advanced battery component manufacturing, advanced battery manufacturing, and recycling.

(B) Amount limitationThe amount of a grant awarded under the program shall be not less than—

(i) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(i);

(ii) $100,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(ii); and

(iii) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(iii).

(i) give priority to an eligible entity that—(I) is located and operates in the United States;(II) is owned by a United States entity;(III) deploys North American-owned intellectual property and span;(IV) represents consortia or industry partnerships; and(V)(aa) if the eligible entity will use the grant for advanced battery component manufacturing, will not use battery material supplied by or originating from a foreign entity of concern; or(bb) if the eligible entity will use the grant for battery recycling, will not export recovered critical materials to a foreign entity of concern; and

(ii) take into consideration whether a project—(I) provides workforce opportunities in low- and moderate-income or rural communities;(II) provides workforce opportunities in communities that have lost jobs due to the displacements of fossil energy jobs;(III) encourages partnership with universities and laboratories to spur innovation and drive down costs;(IV) partners with Indian Tribes;(V) takes into account—(aa) greenhouse gas emissions reductions and energy efficient battery material processing opportunities throughout the manufacturing process; and(bb) supply chain logistics; and(VI) utilizes feedstock produced in the United States.

(4) Authorization of appropriations

(d) Reporting requirementsNot later than 1 year after November 15, 2021, and annually thereafter, the Secretary shall submit to Congress a report on the grant programs established under subsections (b) and (c), including, with respect to each grant program, a description of—

(1) the number of grant applications received;

(2) the number of grants awarded and the amount of each award;

(3) the purpose and status of each project carried out using a grant; and

(4) any other information the Secretary determines necessary.

(e) Lithium-Ion Battery Recycling Prize Competition

(1) In general

(2) Authorization of appropriations for pilot projects

(A) In general

(B) Use of fundsThe Secretary may use amounts made available under subparagraph (A)—

(i) to increase the number of winners of Phase III of the competition;

(ii) to increase the amount awarded to each winner of Phase III of the competition; and

(iii) to carry out any other activity that is consistent with the goals of Phase III of the competition, as determined by the Secretary.

(f) Battery and critical mineral recycling

(1) DefinitionsIn this subsection:

(A) Administrator

(B) BatteryThe term “battery” means a device that—

(i) consists of 1 or more electrochemical cells that are electrically connected; and

(ii) is designed to store and deliver electric energy.

(C) Battery producerThe term “battery producer” means, with respect to a covered battery or covered battery-containing product that is sold, offered for sale, or distributed for sale in the United States, including through retail, wholesale, business-to-business, and online sale, the following applicable entity:

(i) A person who—(I) manufactures the covered battery or covered battery-containing product; and(II) sells or offers for sale the covered battery or covered battery-containing product under the brand of that person.

(ii) If there is no person described in clause (i) with respect to the covered battery or covered battery-containing product, the owner or licensee of the brand under which the covered battery or covered battery-containing product is sold, offered for sale, or distributed, regardless of whether the trademark of the brand is registered.

(iii) If there is no person described in clause (i) or (ii) with respect to the covered battery or covered battery-containing product, a person that imports the covered battery or covered battery-containing product into the United States for sale or distribution.

(D) Covered battery

(E) Covered battery-containing product

(F) Critical mineral

(G) Primary battery

(H) Rechargeable battery

(i) In generalThe term “rechargeable battery” means a battery that—(I) contains 1 or more voltaic or galvanic cells that are electrically connected to produce electric energy;(II) is designed to be recharged;(III) weighs not more than 11 pounds; and(IV) has a watt-hour rating of not more than 300 watt-hours.

(ii) ExclusionsThe term “rechargeable battery” does not include a battery that—(I) contains electrolyte as a free liquid; or(II) employs lead-acid technology, unless that battery is sealed and does not contain electrolyte as a free liquid.

(I) RecyclingThe term “recycling” means the series of activities—

(i) during which recyclable materials are processed into specification-grade commodities, and consumed as raw-material feedstock, in lieu of virgin materials, in the manufacturing of new products;

(ii) that may include collection, processing, and brokering; and

(iii) that result in subsequent consumption by a materials manufacturer, including for the manufacturing of new products.

(2) Battery recycling research, development, and demonstration grants

(A) In generalThe Secretary, in coordination with the Administrator, shall award multiyear grants to eligible entities for research, development, and demonstration projects to create innovative and practical approaches to increase the reuse and recycling of batteries, including by addressing—

(i) recycling activities;

(ii) the development of methods to promote the design and production of batteries that take into full account and facilitate the dismantling, reuse, recovery, and recycling of battery components and materials;

(iii) strategies to increase consumer acceptance of, and participation in, the recycling of batteries;

(iv) the extraction or recovery of critical minerals from batteries that are recycled;

(v) the integration of increased quantities of recycled critical minerals in batteries and other products to develop markets for recycled battery materials and critical minerals;

(vi) safe disposal of waste materials and components recovered during the recycling process;

(vii) the protection of the health and safety of all persons involved in, or in proximity to, recycling and reprocessing activities, including communities located near recycling and materials reprocessing facilities;

(viii) mitigation of environmental impacts that arise from recycling batteries, including disposal of toxic reagents and byproducts related to recycling processes;

(ix) protection of data privacy associated with collected covered battery-containing products;

(x) the optimization of the value of material derived from recycling batteries; and

(xi) the cost-effectiveness and benefits of the reuse and recycling of batteries and critical minerals.

(B) Eligible entitiesThe Secretary, in coordination with the Administrator, may award a grant under subparagraph (A) to—

(i) an institution of higher education;

(ii) a National Laboratory;

(iii) a Federal research agency;

(iv) a State research agency;

(v) a nonprofit organization;

(vi) an industrial entity;

(vii) a manufacturing entity;

(viii) a private battery-collection entity;

(ix) an entity operating 1 or more battery recycling activities;

(x) a State or municipal government entity;

(xi) a battery producer;

(xii) a battery retailer; or

(xiii) a consortium of 2 or more entities described in clauses (i) through (xii).

(i) In general

(ii) ContentsAn application submitted under clause (i) shall describe how the project will promote collaboration among—(I) battery producers and manufacturers;(II) battery material and equipment manufacturers;(III) battery recyclers, collectors, and refiners; and(IV) retailers.

(D) Authorization of appropriations

(3) State and local programs

(A) In general

(B) Non-Federal cost share

(D) Authorization of appropriations

(4) Retailers as collection points

(A) In general

(B) Collection systemA system described in subparagraph (A) shall include take-back of covered batteries—

(i) at no cost to the consumer; and

(ii) on a regular, convenient, and accessible basis.

(5) Task force on producer responsibilities

(A) In generalThe Secretary, in coordination with the Administrator, shall convene a task force to develop an extended battery producer responsibility framework that—

(i) addresses battery recycling goals, cost structures for mandatory recycling, reporting requirements, product design, collection models, and transportation of collected materials;

(ii) provides sufficient flexibility to allow battery producers to determine cost-effective strategies for compliance with the framework; and

(iii) outlines regulatory pathways for effective recycling.

(B) Task force membersMembers of the task force convened under subparagraph (A) shall include—

(i) battery producers, manufacturers, retailers, recyclers, and collectors or processors;

(ii) States and municipalities; and

(iii) other relevant stakeholders, such as environmental, energy, or consumer organizations, as determined by the Secretary.

(C) ReportNot later than 1 year after the date on which the Secretary, in coordination with Administrator, convenes the task force under subparagraph (A), the Secretary shall submit to Congress a report that—

(i) describes the extended producer responsibility framework developed by the task force;

(ii) includes the recommendations of the task force on how best to implement a mandatory pay-in or other enforcement mechanism to ensure that battery producers and sellers are contributing to the recycling of batteries; and

(iii) suggests regulatory pathways for effective recycling.

(6) Effect on Mercury-Containing and Rechargeable Battery Management Act

(Pub. L. 117–58, div. D, title II, § 40207, Nov. 15, 2021, 135 Stat. 963.)