Battery Material Processing and Component Manufacturing Act of 2021

To direct the Secretary of Energy to establish grant programs focused on battery material processing, manufacturing, and recycling programs, and for other purposes. 1. Short title This Act may be cited as the Battery Material Processing and Component Manufacturing Act of 2021 2. Battery material processing grants; battery manufacturing and recycling grants (a) Definitions In this section: (1) Advanced battery The term advanced battery (2) Advanced battery component (A) In general The term advanced battery component (B) Inclusions The term advanced battery component (3) Battery material The term battery material (4) Eligible entity The term eligible entity 42 U.S.C. 16353(b) (5) Manufacturing The term manufacturing (6) Processing The term processing (7) Recycling The term recycling (b) Battery material processing grants (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall establish within the Office of Fossil Energy a program, to be known as the Battery Material Processing Grant Program program (2) Purposes The 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 general Under 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 limitation The 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). (C) Priority; consideration In awarding grants to eligible entities under the program, the Secretary shall— (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 content; (IV) represents consortia or industry partnerships; and (V) will not use battery material supplied by or originating from a foreign entity of concern; and (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) Wage rate requirements (A) Davis-bacon Any laborer or mechanic employed by any contractor or subcontractor in the performance of work on a project funded by a grant awarded under this subsection shall be paid wages at rates not less than those prevailing on similar projects in the locality as determined by the Secretary of Labor under subchapter IV of chapter 31 Davis-Bacon Act (B) Authority With respect to the labor standards specified in subparagraph (A), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (5) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out the program $3,500,000,000 for the period of fiscal years 2022 through 2026, to remain available until expended. (c) Battery manufacturing and recycling grants (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall establish within the Office of Energy Efficiency and Renewable Energy a battery manufacturing and recycling grant program (referred to in this subsection as the program (2) Purpose The purpose of the program is to ensure that the United States has a viable domestic manufacturing and recycling capability to support and sustain a North American battery supply chain. (3) Grants (A) In general Under 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 limitation The 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). (C) Priority; consideration In awarding grants to eligible entities under the program, the Secretary shall— (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 content; (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) Wage rate requirements (A) Davis-bacon Any laborer or mechanic employed by any contractor or subcontractor in the performance of work on a project funded by a grant awarded under this subsection shall be paid wages at rates not less than those prevailing on similar projects in the locality as determined by the Secretary of Labor under subchapter IV of chapter 31 Davis-Bacon Act (B) Authority With respect to the labor standards specified in subparagraph (A), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (5) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out the program $6,500,000,000 for the period of fiscal years 2022 through 2026, to remain available until expended. (d) Reporting requirements Not later than 1 year after the date of enactment of this Act, 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.

Summary: Battery Material Processing and Component Manufacturing Act of 2021 This bill requires the Department of Energy to establish grant programs to support, enhance, and sustain a domestic supply chain for batteries, including grants to facilities for processing, manufacturing, and recycling batteries.