Critical Minerals and Manufacturing Support Act

HR 3200 increases the tax credit for battery production by raising the advanced manufacturing credit for electrode active materials from 10% to 25%. It requires that qualifying battery components meet specific sourcing thresholds: by 2026, at least 70% of critical minerals must be extracted, processed, or recycled in the U.S., U.S. free trade agreement countries, or North America, rising to 80% after 2026. The bill also mandates that 70% of battery component materials must be produced in North America by 2026, increasing to 100% after 2028. Components containing critical minerals or materials sourced from "foreign entities of concern" are excluded from the tax credit, and the changes apply to components produced and sold after December 31, 2025.