Sec. 855. Procurement of secure lithium-ion batteries
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The Department of Defense is required to procure lithium-ion batteries produced in the United States or in allied nations, and cells that contain minimal Foreign Entity of Concern-sourced (Foreign Entity of Concern, derivative, successor, or affiliate) components or technology beginning in 2026 as specified in subsection (b). The percentages required in
(b)apply to cells procured as end items or embedded within warfighting and support systems. Not less than 10 percent of the total battery procurement of the Department of Defense beginning in 2026. Not less than 25 percent of the total battery procurement of the Department of Defense beginning in 2027. Not less than 50 percent of the total battery procurement of the Department of Defense beginning in 2028. Not less than 90 percent of the total battery procurement of the Department of Defense beginning in 2029. For purposes of this section, a battery or cell shall be considered compliant with the rule in subsection
(a)if— the final product is assembled or manufactured in the United States, Canada, United Kingdom, Australia, New Zealand, South Korea, or Japan; not less than 95 percent of the components of the cells by value originates from non-Foreign Entity of Concern sources (Foreign Entity of Concern, derivative, successor, or affiliate); and the production of these batteries and cells does not require licensing of technology from a Foreign Entity of Concern or its derivative, successor, or affiliate. If the batteries and cells cannot be produced which meet the requirements within subsections
(b)and
(c)at required quality, quantity, and reasonable cost, the Secretary of Defense may waive directed percentages in subsection (b).