Transparent Battery Supply Chain Bill

Bipartisan legislation (HR 8187) introduced last week would improve transparency in the current battery supply chain by creating an Energy Department program to support the development, implementation and adoption of digital identification systems.

The bill, the Critical Material Transparency and Reporting of Advanced Clean Energy (Critical Material TRACE) Act, is co-sponsored by Reps. Paul Tonko (D-NY) and Garret Graves (R-La).

“A successful clean energy transition requires an overhaul of the current battery supply chain in its many phases from material extraction and production to end of life processing and recycling,” Rep. Tonko said.

“A well-developed digital battery identifier and set of reporting standards would allow for the smooth transfer of relevant information between various stakeholders, including mining companies, manufacturers, recyclers, consumers, and regulators, while helping meet long-term goals for stable, secure, and ethical battery supply chains. Our Critical Material TRACE Act would deliver that robust battery identification system,” he continued.

“The United States is almost entirely reliant on foreign sources for critical materials and minerals, and it’s unfortunate that countries like China are dominating the battery supply chain given their questionable environmental and labor standards,” said Rep. Graves.

“We know that demand for these materials and minerals will continue to rise, and it’s imperative that the United States be a proactive leader in ensuring that we source these materials while protecting our global environment, national security, and democratic values.”

The Critical Material TRACE Act would help protect human rights and uphold high labor and environmental standards, according to its sponsors. With the ability to see where materials are coming from and going to, this transparency will not only help ensure that ethical and sustainable practices are being followed, but can also help identify and address challenges in global supply chains that may impact energy security.
The bill would:

• establish an Energy Department program to support voluntary digital identifiers for advanced energy technologies;
• require DOE to support or develop digital battery identifiers, that include data on: origins of battery materials, including those from foreign entities of concern; information on recycling, reuse pathways and end-of-life management; certain chemical, diagnostic, maintenance, repair and performance data; and any associated human rights, labor, and environmental concerns; and
• require the DOE to lead robust external engagement, protect confidential business information, consumer privacy and ensure compatibility with existing relevant standards and laws.

The legislation has been endorsed by: the Advanced Energy United, Battery Materials and Technology Coalition; Circulor; Earthjustice; Earthworks; the Global Battery Alliance; Optel; SAFE; Sierra Club; Umicore and the Union of Concerned Scientists