Critical Minerals Independence
Summary
H.R. 6826, the "Critical Minerals Independence" Act, aims to amend the Internal Revenue Code of 1986 by expanding the advanced manufacturing production credit to include black mass. Black mass is defined as the intermediate material produced from processing spent lithium-ion batteries, containing valuable materials like lithium, nickel, cobalt, manganese, and graphite. The bill intends to incentivize the domestic processing and recycling of these critical minerals.
Expected Effects
The primary effect of this bill would be to make the processing of black mass eligible for the advanced manufacturing production credit. This could encourage investment in facilities and technologies for recycling lithium-ion batteries. Ultimately, it could reduce reliance on foreign sources for critical minerals.
Potential Benefits
- Incentivizes domestic recycling of critical minerals.
- Reduces reliance on foreign supply chains for battery materials.
- Supports the growth of a domestic battery recycling industry.
- Could create jobs in the recycling and manufacturing sectors.
- Promotes a more circular economy for lithium-ion batteries.
Potential Disadvantages
- Potential for unintended environmental consequences if recycling processes are not properly regulated.
- The cost of the tax credit could impact government revenue.
- The definition of "black mass" may need further clarification to avoid loopholes.
- Benefits may disproportionately accrue to large corporations.
- May not address the root causes of mineral supply chain vulnerabilities.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8) by promoting economic growth and energy security through domestic recycling of critical minerals. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).