House Republicans introduced a bill last week that would ban the Department of Homeland Security (DHS) from procuring batteries from six Chinese companies that have links to the People’s Republic of China (PRC).
The legislation, the Decoupling from Foreign Adversarial Battery Dependence Act, is intended “to decouple the supply chain from the United States’ geopolitical adversary.”
"The United States cannot give the Chinese Communist Party the opportunity to undermine our homeland security by relying on China for crucial components to our economy and security,” said Rep. Mark Green (R-Tenn.), who’s a co-sponsor of the bill.
Some of the companies mentioned in the bill include manufacturers of lithium-ion batteries such as Contemporary Amperex Technology (CATL), Gotion High Tech, and BYD Company.
Citing news reports, the lawmakers said that the PRC produces about 80 percent of the world’s batteries and around 75 percent of the globe’s lithium-ion batteries.
The lawmakers also noted that “CATL is the world’s largest manufacturer of lithium-ion batteries and a foremost actor in the global electric vehicle (EV) market.”
This bill is the latest effort by the U.S. government to reduce American reliance on China and other nations that are considered foreign adversaries.
A similar provision that was added to last year’s National Defense Authorization Act (NDAA) bans the Department of Defense from procuring batteries from the same six Chinese companies.
As part of this ongoing effort, the Biden administration unveiled in December guidance that aims to reduce U.S. reliance on foreign-manufactured electric vehicle battery components.
Under the new guidance, buyers of electric vehicles may not qualify to receive tax credits under the Inflation Reduction Act (IRA) if their cars contain battery components that originated from foreign entities of concern (FEOC), which include China, Russia, Iran, and North Korea.
Starting this year, electric vehicles eligible for the tax credits cannot contain battery components that are manufactured or assembled by a FEOC. And at the beginning of 2025, the same rule will extend to critical minerals that were extracted, processed, or recycled by a FEOC.
Last week, the same group of Republican lawmakers urged the Biden administration to add CATL and Gotion High Tech to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List for their ties to forced labor.
The legislation, the Decoupling from Foreign Adversarial Battery Dependence Act, is intended “to decouple the supply chain from the United States’ geopolitical adversary.”
"The United States cannot give the Chinese Communist Party the opportunity to undermine our homeland security by relying on China for crucial components to our economy and security,” said Rep. Mark Green (R-Tenn.), who’s a co-sponsor of the bill.
Some of the companies mentioned in the bill include manufacturers of lithium-ion batteries such as Contemporary Amperex Technology (CATL), Gotion High Tech, and BYD Company.
Citing news reports, the lawmakers said that the PRC produces about 80 percent of the world’s batteries and around 75 percent of the globe’s lithium-ion batteries.
The lawmakers also noted that “CATL is the world’s largest manufacturer of lithium-ion batteries and a foremost actor in the global electric vehicle (EV) market.”
This bill is the latest effort by the U.S. government to reduce American reliance on China and other nations that are considered foreign adversaries.
A similar provision that was added to last year’s National Defense Authorization Act (NDAA) bans the Department of Defense from procuring batteries from the same six Chinese companies.
As part of this ongoing effort, the Biden administration unveiled in December guidance that aims to reduce U.S. reliance on foreign-manufactured electric vehicle battery components.
Under the new guidance, buyers of electric vehicles may not qualify to receive tax credits under the Inflation Reduction Act (IRA) if their cars contain battery components that originated from foreign entities of concern (FEOC), which include China, Russia, Iran, and North Korea.
Starting this year, electric vehicles eligible for the tax credits cannot contain battery components that are manufactured or assembled by a FEOC. And at the beginning of 2025, the same rule will extend to critical minerals that were extracted, processed, or recycled by a FEOC.
Last week, the same group of Republican lawmakers urged the Biden administration to add CATL and Gotion High Tech to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List for their ties to forced labor.
