Battery Material Processing and Component Manufacturing Act of 2021
Bill: S.3066 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Energy

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.

To require the Secretary of Energy to establish a battery material 
  processing grant program and a battery manufacturing and recycling 
                 grant program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Battery Material Processing and 
Component Manufacturing Act of 2021''.

SEC. 2. BATTERY MATERIAL PROCESSING AND BATTERY MANUFACTURING AND 
              RECYCLING GRANTS.

    (a) Definitions.--In this section:
            (1) Advanced battery.--The term ``advanced battery'' means 
        a battery that consists of a battery cell that can be 
        integrated into a module, pack, or system to be used in energy 
        storage applications, including electric vehicles and the 
        electric grid.
            (2) Advanced battery component.--
                    (A) In general.--The term ``advanced battery 
                component'' means a component of an advanced battery.
                    (B) Inclusions.--The term ``advanced battery 
                component'' includes materials, enhancements, 
                enclosures, anodes, cathodes, electrolytes, cells, and 
                other associated technologies that comprise an advanced 
                battery.
            (3) Battery material.--The term ``battery material'' means 
        the raw and processed form of a mineral, metal, chemical, or 
        other material used in an advanced battery component.
            (4) Eligible entity.--The term ``eligible entity'' means an 
        entity described in any of paragraphs (1) through (5) of 
        section 989(b) of the Energy Policy Act of 2005 (42 U.S.C. 
        16353(b)).
            (5) Foreign entity of concern.--The 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 219(a) of the 
                Immigration and Nationality Act (8 U.S.C. 1189(a));
                    (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) of title 10, United States Code);
                    (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, United States 
                        Code (commonly known as the ``Espionage Act'');
                            (ii) section 951 or 1030 of title 18, 
                        United States Code;
                            (iii) chapter 90 of title 18, United States 
                        Code (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 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) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (7) Manufacturing.--The term ``manufacturing'', with 
        respect to an advanced battery and an advanced battery 
        component, means the industrial and chemical steps taken to 
        produce that advanced battery or advanced battery component, 
        respectively.
            (8) Processing.--The term ``processing'', with respect to 
        battery material, means the refining of materials, including 
        the treating, baking, and coating processes used to convert raw 
        products into constituent materials employed directly in 
        advanced battery manufacturing.
            (9) Recycling.--The term ``recycling'' means the recovery 
        of materials from advanced batteries to be reused in similar 
        applications, including the extracting, processing, and 
        recoating of battery materials and advanced battery components.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (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'' (referred to in this 
        subsection as the ``program''), under which the Secretary shall 
        award grants in accordance with this subsection.
            (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) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        $3,000,000,000 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) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        $3,000,000,000 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.
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