The BATT Coalition Aims to Plug Gaps in Domestic Battery Supply Chain

Leading companies in battery manufacturing have formed a new coalition to promote policies that protect investments in a robust domestic supply for critical materials and recycling outside of China and ensure the nation’s historic down payment on a clean energy economy pays dividends for decades to come.

The Battery Advocacy for Technology Transformation (BATT) Coalition will leverage the collective voice of foremost innovators across the supply chain — from upstream producers of raw materials, makers of discrete battery components, and battery recycling — in Congress, the executive branch, and with other stakeholders in fortifying our industrial independence and safeguard our national security. 

The charter members of the BATT Coalition are a diverse set of industry leaders building a robust U.S. battery supply chain, including Mitra Chem, Xerion Advanced Battery Corp., Orbia Fluor & Energy Materials, Sicona Battery Technologies, NanoGraf Corporation, and Novalith.  

“The United States is primed to become a global leader in advanced battery development and manufacturing,” said Mitra Chem CEO and Co-Founder Vivas Kumar. “For our technology and innovation to flourish it’s essential for the U.S. government to bolster the private sector through targeted policies that reduce our reliance on a fragile supply chain dominated by China. Together we can usher in a new phase of high value manufacturing jobs here at home, and we are excited to be part of this essential effort.” 

“Our technology can compete in a free and open market, but unfortunately the domestic battery materials supply chain is up against a foreign supply chain that has benefited from decades of support from foreign governments,” added Orbia Vice President for Growth and Technology Miki Oljaca. “Policy makers need to understand the depth and breadth of these on-going challenges for domestic manufacturers and what is needed to support this critical U.S. industry. We are excited to move that discussion forward.”  

The BATT Coalition boasts a leadership team with deep technical and executive experience in the Department of Energy and on Capitol Hill, including:     

• Samm Gillard: former battery supply chain technical lead at DOE and lead author on the 100 Day Supply Chain Report on High-Capacity Batteries 

• Dave Howell: former Vehicle Technologies Office (VTO) Director and Manufacturing and Energy Supply Chains Office (MESC) Deputy Principal Director. 

• Drew Ronneberg: former DOE technical program manager for vehicles and manufacturing and experienced lobbyist 

• Chris Michelbacher: former charging and energy lead for Audi of America and DOE National Laboratory researcher for advanced Li-ion systems 

The expiration at the end of 2025 of the provisions of the 2017 Tax Cuts and Jobs Act (TCJA) presents a historic opportunity to shape the debate over the most effective policies and the coalition has laid out an aggressive policy agenda on tax, trade and other government incentives.

Specifically, the BATT Coalition will be advocating for the following policies for 2025:   

• Increasing the Section 45X tax credit for battery materials and components.  The Section 45X tax credit for production cost of battery materials and components is currently 10%, which provides a significantly smaller incentive to produce battery materials in the US compared to cells or modules.  The BATT Coalition will advocate for increasing the Section 45X tax credit for battery materials to 25% to further incentivize the domestic production of Li-ion battery materials.    

• Adding Sourcing Requirements for Section 45X and 45W tax credits:  Require that the Section 45X tax credit for cells ($35/kWh) and modules ($10/kWh), as well as the $7,500 commercial vehicle tax credit, be subjected to the same sourcing requirements as the Section 30D Clean Vehicle consumer tax credit, to ensure most battery materials and components do not contain critical minerals from Foreign Entities of Concern.

• Using tariff authorities to incentivize production of materials and components: Use Section 301 and other tariff authorities to ensure that domestic lithium-ion battery materials and components compete on a level playing field with imports.    

• Engaging with policymakers about issues of interest to the BATT Coalition members: Ensure existing and future policies are better prioritized and enforced to more effectively incentivize the battery materials supply chain.  Advocate for legislation that will help build a sustainable domestic supply chain in critical minerals. 

“We believe the federal government can and must do more to protect and promote the domestic battery materials supply chain if America is going to truly lead the clean energy revolution,” said Samm Gillard, Executive Director of the BATT Coalition. “The series of historic investments, tax incentives, and other policies implemented in recent years will only take us so far unless those measures are expanded and sharpened.”   

The battery supply chain will undergo major changes over the next decade as EVs are poised to transform the vehicle industry. By 2030, the global lithium-ion battery market is expected to grow by a factor of five to ten. Currently, China exercises outsized control of the production and supply of critical materials for lithium-ion batteries, accounting for production of roughly 90% of anodes; 75% of cathodes; 75% of separators; and 80% of electrolytes.  

China’s control of the upstream battery supply chain not only provides it the power to set prices and eliminate competition. Its ability to shut off the supply of critical materials threatens our national security.  

“After over two years of bipartisan accomplishments, we are at a crossroads for the domestic battery supply chain,” said Dave Howell, the BATT Coalition’s Strategy Director. “If we rest on our laurels and fail to take further steps to expand and improve upon these efforts, we risk taking two steps forward and one step back. And China will continue to undermine our domestic achievements.”   

 As a first step, the BATT Coalition on June 28 submitted a public comment letter to the Office of the United States Trade Representative on proposed modifications to Section 301 tariffs, emphasizing “the need to include lithium-ion battery electrolyte solvents and salts in the proposed Section 301 tariff modifications and the need to consider Section 301 tariffs rates higher than the current 25% rate.”  

Drew Ronneberg, the BATT Coalition’s Policy Director, stated: “It is crystal clear that our continued dependence on China for upstream battery materials will block the United States from establishing and capturing a domestic EV industrial base. Without the protection of tariffs to combat Chinese unfair trade practices, our national security, which depends on many of the same materials, will continue to be imperiled.”  

Added Gillard: “The only way to prevent this is to invest in ALL the material inputs that go into our supply chain, from the raw materials to product delivery, and every step in between.”  

The Battery Advocacy for Technology Transformation (BATT) Coalition is an industry coalition dedicated to increasing domestic production of raw materials and components for electric batteries. Follow us on LinkedIn.