Critical 45X provisions come at a pivotal time for the battery industry
By Roger Miksad, President & Executive Director of Battery Council International
The “One Big, Beautiful Bill” just signed into law by President Trump has some big, beautiful stuff for the battery industry.
Throughout the legislative process and in the run-up to the bill’s signing into law in early July, BCI and its representatives were working 24/7 to engage with Congress, promote the industry’s interests, and keep our members apprised of various changes in what was an incredibly complex proposal that was frequently evolving.
At the end of the day, the final product was a big win for U.S. battery manufacturers – particularly for manufacturers benefiting from the legislation’s advanced manufacturing tax credits for battery companies in Section 45X of the tax code.
The 45X provisions provide a significant boost to battery manufacturers in the fight to ensure that the U.S. domestic industry can provide world-leading products to U.S. customers, be commercially competitive on a global scale, and manage supply chains independent of interference from foreign adversaries. This stands in stark contrast to recent decades where government policies have disadvantaged battery manufacturers through increased tax burdens and unnecessary and overly burdensome regulation.
Every American depends batteries in their everyday life, from the cars and trucks they drive to the warehouse forklifts that are critical to supply chain logistics to the next-gen batteries supporting the nation’s power grid and defense satellites.
President Trump and Congress rightly understood that 45X is the right approach for America’s economic interests and its national security, and they preserved and better secured those incentives to the battery industry.
To be clear, domestic battery manufacturers have been producing energy storage solutions for more than 125 years and have resisted pressures to move operations overseas where costs and labor would be less expensive.
These are home-grown, family-owned and operated companies that offer good-paying manufacturing and technical jobs and support their local communities. The 45X provisions in recent legislation help to level the playing field with competitors elsewhere in the world, where governments provide unfair advantages.
45X ensures America can defend its dominance and build an even brighter future. The domestic battery industry directly supports $10 trillion in economic output (21% of the U.S. economy), with some 54 million jobs dependent on batteries. Providing incentives for these proud American companies is critical for them to continue to expand production, increase payrolls, and research new innovations.
BCI is incredibly grateful to the Trump Administration, members of the U.S. House and Senate, and all the aides, assistants and other staffers that helped us make the case for 45X. We’re also thankful to each and every BCI member who helped arm us with real-world facts for the meetings scheduled and documents produced by BCI, and for the efforts BCI member companies made on their own to show a strong, broad base of industry support. It was truly a team effort by this industry, and allowed us to tell a powerful story of domestic manufacturing success.
Various efforts from BCI included
A transition document for the incoming Trump Administration last fall, and a briefing for legislators at the beginning of the 119th Congress to outline our priorities.
An economic impact study on the footprint of the U.S. lead battery industry.
An interactive member map to show the communities served by BCI and energy storage companies across North America.
Numerous public statements of support for 45X across the 2025 legislative process, both online and in social media.
Dozens of personal meetings on Capitol Hill
Having your voice heard can sometimes be a challenge even in the most collegial of times here in the nation’s capital. And during the high-stress and high-stakes period between the first day of the 119th Congress back on January 3, 2025, right up until the passage of this landmark piece of legislation, it was even more critical than usual.
BCI is proud to say that our hard work paid off, and the final text of the “One Big, Beautiful Bill” delivers much-needed incentives to domestic battery manufacturers. This is a huge victory that comes at a critical time for our industry. With disputes over global supplies of critical minerals and foreign economies engaging in anticompetitive actions, the stakes for battery manufacturers are higher than ever.
I want to personally extend my heartfelt thanks to everyone who helped achieve this victory for our industry. This was a team effort that shows what BCI and its members can accomplish together.
BCI and its members are building a bright and vibrant battery industry. Together, we will power another century of excellence.
