10 U.S.C. § 4865 — Prohibition on acquisition of advanced batteries composed of materials from certain foreign sources

**(a) In General.—** The Secretary of Defense shall procure advanced batteries and cells whose functional cell components and technology, whether as end items or embedded within warfighting and support systems, are not owned, sourced, refined, or produced from a foreign entity of concern. **(b) Applicability.—** This section applies to all new acquisition programs on January 1, 2028, standard batteries on January 1, 2029, and for existing acquisition programs on January 30, 2031. **(c) Exceptions.—** (1) **Sourcing and production compliance.—** (A) *In general.—* — Subsection (a) does not apply to an advanced battery or cell of an advanced battery if— (i) the final assembly of such advanced battery or cell is carried out by an entity other than a foreign entity of concern; (ii) functional cell components comprising more than 95 percent of the costs of the functional cell components of such advanced battery or cell are from sources other than foreign entities of concern; and (iii) such advanced battery or cell is produced without technology licensed from a foreign entity of concern. (B) *Recycled source determination.—* — For the purposes of subparagraph (A)(ii), any material or component from an entity that has been recycled and reprocessed domestically is considered to originate from that entity regardless of origin. (2) **Excluded batteries.—** — Subsection (a) does not apply to a battery or cell of a battery that is— (A) acquired for use in a cell phone, laptop, personal electronic device, or medical equipment intended for use in an office, administrative, hospital, or non-combat environment; (B) commercially available off-the-shelf item for use only in the maintenance of equipment; or (C) acquired for research, development, testing, and evaluation by the Department of Defense. (3) **Waiver.—** (A) *In general.—* — The Secretary of Defense may waive the limitations specified in subsection (a) for a specific system or battery for one year if— (i) the Secretary determines that a satisfactory quality and sufficient quantity such advanced battery or cell that are not subject to such prohibition cannot be acquired as and when needed by the Department of Defense at reasonable costs; or (ii) in the case of an advanced battery or cell that is a component of a warfighting or support system, sufficient documentation exists to show that such advanced battery or cell is not a functional enabler of operational capability for such system and such advanced battery or cell poses no risk to the security of or sourcing for such system. (B) *Delegation.—* — The Secretary of Defense may delegate the authority under subparagraph (A) only to the Under Secretary of Defense for Acquisition and Sustainment. **(d) Report.—** Not later than December 1, 2028, and not less frequently than once every three years thereafter until the date that is twelve years after the date of the enactment of this Act, the Secretary of Defense shall provide to the congressional defense committees a briefing on the status of meeting the requirements under subsection (a). **(e) Definitions.—** In this section: (1) The term “new acquisition program” means a defense acquisition program that has not reached the initiation of the engineering and manufacturing development phase, or an equivalent phase of development, including a defense acquisition program that has not undergone a formal Milestone B approval or equivalent decision point, before the date of the enactment of this Act. (2) The term “existing acquisition program” means a defense acquisition program that has reached the initiation of the engineering and manufacturing development phase, or an equivalent phase of development, including a defense acquisition program that has undergone a formal Milestone B approval or equivalent decision point, before the date of the enactment of this Act. (3) The term “functional cell component” means the cathode materials, anode materials, separators, anode foils, and other functional materials of an advanced battery that contribute to the chemical processes necessary for energy storage, including solvents, additives, electrolyte salts, and internal safety devices. (4) The “foreign entity of concern” has the meaning given such term under section 40207(a) of the Infrastructure Investment and Jobs Act ([42 U.S.C. 18741(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section18741/a&num=0&edition=prelim)), and includes entities specified in section 154 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31; [10 U.S.C. 4651](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4651&num=0&edition=prelim) note prec.). (5) The term “standard battery” means a battery that used in more than one weapons system and are not managed by one portfolio acquisition executive.