I 
119TH CONGRESS 
1ST SESSION H. R. 3200 
To amend the Internal Revenue Code of 1986 to modify the advanced 
manufacturing credit with respect to the production of battery components. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2025 
Mr. RUIZ (for himself and Mr. EVANS of Colorado) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the advanced manufacturing credit with respect to the 
production of battery components. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Critical Minerals and 
Manufacturing Support Act’’. 
SEC. 2. MODIFICATION OF ADVANCED MANUFACTURING 
PRODUCTION CREDIT RELATING TO BAT-
TERY PRODUCTION. 
(a) INCREASE IN CREDIT AMOUNT FOR ELECTRODE 
ACTIVE MATERIALS.—Section 45X(b)(1)(J) of the Inter-
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nal Revenue Code of 1986 is amended by striking ‘‘10 per-
cent’’ and inserting ‘‘25 percent’’. 
(b) SPECIAL RULES RELATING TO PRODUCTION OF 
ELECTRODE ACTIVE MATERIALS.—Section 45X(b) of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(5) SPECIAL RULES RELATING TO ELECTRODE 
ACTIVE MATERIALS.— 
‘‘(A) PRODUCTION
COSTS.—The produc-
tion of electrode active materials shall include 
the cost of raw materials, including material ex-
traction from geological sources or waste prod-
ucts.’’. 
(c) SOURCING REQUIREMENTS WITH RESPECT TO 
QUALIFYING BATTERY COMPONENTS AND APPLICABLE 
CRITICAL MINERALS.—Section 45X of such Code is 
amended by adding at the end the following new sub-
section: 
‘‘(e) CRITICAL MINERAL AND BATTERY COMPONENT 
SOURCING REQUIREMENTS.— 
‘‘(1) APPLICABLE CRITICAL MINERALS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section with respect to a quali-
fying battery component unless the percentage 
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of the value of the applicable critical minerals 
contained therein that were— 
‘‘(i) extracted or processed— 
‘‘(I) in the United States, or 
‘‘(II) in any country with which 
the United States has a free trade 
agreement in effect, or 
‘‘(ii) recycled, and reintegrated into 
the supply chain, in North America, 
is at least equal to the applicable percentage (as 
certified by the taxpayer in such form or man-
ner as prescribed by the Secretary). 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage shall be— 
‘‘(i) in the case of any qualifying bat-
tery component sold to an unrelated person 
during calendar year 2026, 70 percent, 
and 
‘‘(ii) in the case of any qualifying bat-
tery component sold to an unrelated person 
after December 31, 2026, 80 percent. 
‘‘(2) QUALIFYING BATTERY COMPONENTS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section with respect to a quali-
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fying battery component unless the percentage 
of the value of the constituent elements, mate-
rials, and subcomponents contained therein that 
were produced, manufactured, or assembled in 
North America is at least equal to the applica-
ble percentage (as certified by the taxpayer, in 
such form or manner as prescribed by the Sec-
retary). 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage shall be— 
‘‘(i) in the case of qualifying battery 
components sold to an unrelated person 
during calendar year 2026, 70 percent, 
‘‘(ii) in the case of qualifying battery 
components sold to an unrelated person 
during calendar year 2027, 80 percent, 
‘‘(iii) in the case of qualifying battery 
components sold to an unrelated person 
during calendar year 2028, 90 percent, 
and 
‘‘(iv) in the case of qualifying battery 
components sold to an unrelated person 
after December 31, 2028, 100 percent. 
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‘‘(3) REGULATIONS.—The Secretary shall, to 
the extent practicable, prescribe regulations similar 
to regulations prescribed under section 30D(e) to 
carry out the purposes of this subsection.’’. 
(d) EXCLUDED ENTITIES.—Section 45X(c)(1) of 
such Code is amended by adding at the end the following 
new subparagraph: 
‘‘(C) EXCLUDED ENTITIES.—The term ‘eli-
gible component’ shall not include any quali-
fying battery component with respect to 
which— 
‘‘(i) any of the applicable critical min-
erals contained therein were extracted, 
processed, or recycled by a foreign entity 
of 
concern 
(as 
defined 
in 
section 
40207(a)(5) of the Infrastructure Invest-
ment 
and 
Jobs 
Act 
(42 
U.S.C. 
18741(a)(5))), and 
‘‘(ii) any of the constituent elements, 
materials, or subcomponents contained 
therein were produced, manufactured, or 
assembled by a foreign entity of concern 
(as so defined). 
The term ‘foreign entity of concern’ shall in-
clude any entity that is directly or indirectly 
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owned by a foreign entity of concern described 
in subparagraph (C) of section 40207(a)(5) of 
such Act.’’. 
(e) MODIFICATION OF ELECTRODE ACTIVE MATE-
RIAL DEFINITION.— 
(1) IN GENERAL.—Section 45X(c)(5)(B)(i) of 
such Code is amended— 
(A) by inserting ‘‘electrode active precursor 
materials used in the production of cathode and 
anode materials,’’ after ‘‘anode materials,’’, 
(B) by inserting ‘‘binders,’’ after ‘‘anode 
foils,’’, and 
(C) by inserting ‘‘solid state electrolytes,’’ 
after ‘‘including’’. 
(2) ELECTRODE
ACTIVE
PRECURSOR
MATE-
RIALS.—Section 45X(c)(5)(B)(i) of such Code is 
amended— 
(A) by striking ‘‘MATERIAL.—The term’’ 
and inserting the following: ‘‘MATERIAL.— 
‘‘(I) IN
GENERAL.—The term’’, 
and 
(B) by adding at the end the following new 
subclause: 
‘‘(II) ELECTRODE
ACTIVE
PRE-
CURSOR MATERIAL.—The term ‘elec-
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