H.R. 1166: Decoupling from Foreign Adversarial Battery Dependence Act

The Decoupling from Foreign Adversarial Battery Dependence Act aims to prohibit the U.S. Department of Homeland Security (DHS) from purchasing specific foreign-produced batteries starting October 1, 2027. This is done to reduce dependence on foreign entities considered adversarial to the United States, particularly from China.

Key Provisions of the Bill

• Prohibition on Procurement: The bill stipulates that certain funds authorized for the DHS cannot be used to procure batteries from specific foreign companies listed within the bill.
• Entities Specified: The companies from which DHS is prohibited from procuring batteries include:
  • Contemporary Amperex Technology Company, Limited (CATL)
  • BYD Company, Limited
  • Envision Energy, Limited
  • EVE Energy Company, Limited
  • Gotion High-tech Company, Limited
  • Hithium Energy Storage Technology Company, Limited
  • Entities under the Uyghur Forced Labor Prevention Act
  • Entities identified as Chinese military companies
  • Entities from specified regulations that deal with exports and trade
  • Subsidiaries or successors of the above entities
• Definition of Production: A battery is regarded as produced by one of these entities if they assemble or manufacture the final product or if they supply the majority of its components.
• Waivers: The Secretary of Homeland Security can grant waivers to this prohibition under certain circumstances, such as:
  • If the batteries do not pose any risks to national security, data, or infrastructure.
  • If there are no alternatives available that are of similar quality and cost from non-specified entities.
  • If the batteries are needed for research, evaluation, training, testing, or analysis.
• Congressional Notification: If a waiver is granted, the Secretary must notify Congress within 15 days of this decision.
• Reporting Requirement: Within 180 days of the bill's enactment, the Secretary of Homeland Security must report on how this prohibition will affect the mission and costs of DHS, focusing on various components such as U.S. Customs and Border Protection, Immigration and Customs Enforcement, and the Transportation Security Administration, among others.

Implementation Timeline

The prohibition on procurement is set to take effect on October 1, 2027, allowing a period for the Department of Homeland Security to adjust its procurement strategies and potentially identify alternative suppliers for the batteries it requires.

Relevant Companies

• CATL - A leading battery manufacturer based in China, producing batteries for electric vehicles and other applications.
• BYD - A major Chinese electric vehicle and battery manufacturing company, involved in a wide range of electric technologies.
• Envision Energy - A company specializing in energy management and renewable energy solutions.
• EVE Energy - A Chinese battery manufacturer known for producing lithium batteries.
• Gotion High-tech - A company focused on lithium battery production, especially for electric vehicles.
• Hithium - A battery technology company that produces lithium-ion batteries for energy storage and electric vehicles.