This bill significantly amends the Internal Revenue Code of 1986 to enhance the advanced manufacturing production credit for battery components. It increases the credit amount for electrode active materials from 10 percent to 25 percent, and clarifies that production costs for these materials include raw material extraction from geological sources or waste products. A key provision introduces stringent sourcing requirements for qualifying battery components and applicable critical minerals. For critical minerals, a rising percentage (70% in 2026, 80% thereafter) must be extracted or processed in the United States, a free trade agreement country, or recycled in North America. Similarly, battery components must meet escalating North American content thresholds, reaching 100% after 2028, for their constituent elements, materials, and subcomponents. Additionally, the bill prohibits the credit for components if any critical minerals or constituent elements are produced by a foreign entity of concern . It also expands the definition of electrode active materials to include precursor materials, binders, and solid-state electrolytes, and specifically adds silicon used in battery anodes as an applicable critical material. These modifications are set to apply to components produced and sold after December 31, 2025, aiming to strengthen domestic and allied supply chains for battery manufacturing.