Securing Energy Supply Chains Act

The Securing Energy Supply Chains Act (HR6853) was introduced in the House on December 18, 2025, and subsequently referred to the House Committee on Energy and Commerce. This bill, sponsored by Rep. Fallon (R-TX), requires the Secretary of Energy to establish an 'Energy Non-Procurement List' within 90 days of enactment. This list will identify entities deemed detrimental to U.S. national security, energy security, economic security, public safety, or foreign policy, with a prioritization on entities involved in critical materials and battery supply chains. The bill explicitly states that U.S. companies will be restricted from sourcing from entities on this list. This bill does not authorize specific funding amounts; instead, it establishes a regulatory mechanism that will alter supply chain dynamics. The primary impact will be on U.S. companies that currently rely on foreign suppliers for critical materials and batteries, particularly those from countries that may be deemed 'foreign entities of concern.' These companies will be compelled to re-evaluate and potentially restructure their supply chains, shifting towards domestic or allied sources. This shift is likely to result in increased procurement costs and potential supply disruptions in the short to medium term as new supply relationships are established and domestic production capacity scales. Structural winners under this legislation would be domestic and allied producers of critical materials and batteries, such as Albemarle ($ALB), which could see increased demand for their products. Structural losers include foreign entities likely to be placed on the 'Non-Procurement List,' such as China-based BYD ($BYDDF), which would lose access to the U.S. market for its batteries and related components. U.S. electric vehicle manufacturers like Tesla ($TSLA), General Motors ($GM), and Ford ($F) are also positioned as losers due to their reliance on global supply chains for batteries and critical materials. The forced shift to potentially more expensive or less readily available domestic/allied sources will likely increase their production costs and could impact their competitive pricing. Recent market data shows mixed performance for companies in related sectors. Sociedad Química y Minera de Chile S.A. ($SQM), a major lithium producer, is currently at $88.35, up 1.61% over 7 days and 6.83% over 30 days, indicating some positive sentiment in the broader lithium market. Albemarle ($ALB) is at $186.14, down 4.16% over 7 days but up 3.73% over 30 days. BYD Company Limited ($BYDDF) is at $13.26, down 3.28% over 7 days. U.S. EV manufacturers Tesla ($TSLA) at $376.67, GM ($GM) at $76.99, and Ford ($F) at $12.31 have all seen slight declines over the past 7 days, down 2.8%, 2.54%, and 2.53% respectively. The bill is in its early stages, having only been referred to committee, meaning significant legislative steps remain before potential enactment. The recent Presidential Memoranda on the Defense Production Act, particularly those focused on grid infrastructure and large-scale energy infrastructure, align with the bill's intent to strengthen domestic energy supply chains, potentially amplifying the pressure on U.S. companies to source domestically.