Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.
DHS adds 5 Chinese industries, including steel and lithium, as high priority sectors for UFLPA border enforcement. On August 19, the Department of Homeland Security announced that it is designating five additional Chinese sectors as high priorities for enforcement under the Uyghur Forced Labor Prevention Act (UFLPA). Enacted in 2021, the UFLPA aims to “ensure that goods made with forced labor in the Xinjiang Uyghur Autonomous Region [XUAR] of the People’s Republic of China do not enter the United States market.” It creates a rebuttable presumption that goods with any input from the Xinjiang Region in the People’s Republic of China or made by certain entities were manufactured in part or wholly by forced labor and, therefore, are prohibited from entry into the United States. To overcome the rebuttable presumption and receive an exception from US Customs and Border Protection, importers must meet a high evidentiary standard in demonstrating that the goods were not made with forced labor, among other requirements. The five new categories are steel, copper, lithium, caustic soda – which has numerous industrial applications – and red dates.
California launches new EV infrastructure initiative. On August 6, the California Energy Commission launched the Fast Charge California Project, a new initiative under the California Electric Vehicle Infrastructure Project, which has supported the installation of nearly 10,000 public EV chargers statewide since 2017. The Fast Charge California Project will fully fund the installation of fast EV chargers at publicly accessible businesses and other locations throughout California.
DOT revises guidance for NEVI Formula Program. On August 11, Transportation Secretary Sean Duffy announced revised guidance for the National Electric Vehicle Infrastructure (NEVI) Formula Program. The NEVI initiative, created in 2021 under the Infrastructure Investment and Jobs Act, dedicated $5 billion in grants aimed at creating a nationwide network of EV charging stations, especially in areas with little or no public EV charging infrastructure. The new guidance follows a June order from the US District Court for the Western District of Washington requiring DOT to release $875 million in previously frozen funds. According to a Federal Highway Administration press release, key changes include simplifying the approval process, allowing states to set their own distances between stations along alternative fuel corridors, and authorizing states to decide when their networks are complete so NEVI funds can be used on public roads statewide.
GM signs third domestic rare-earth magnet deal, will keep importing LFP batteries for now. General Motors has signed its third agreement with a domestic supplier – Texas-based Noveon Magnetics Inc. – to secure rare-earth magnets for its SUVs and pickup trucks. Noveon began delivering magnets to GM in July. This deal, along with earlier agreements with E-Vac Magnetics in South Carolina and MP Materials in Nevada (both expected to start production in 2026), is part of GM’s ongoing efforts to build a US supply chain for rare-earth magnets.
Meanwhile, the Wall Street Journal reports that, despite new tariffs, GM will import lithium-iron phosphate (LFP) batteries made by Chinese battery maker CATL for its next-generation Bolt EVs. Those imported batteries are intended to bridge the gap until GM and LG Energy Solutions can begin domestic LFP battery production at a Tennessee facility, currently slated to start commercial output in late 2027.
CATL suspends operations at lithium mine. On August 11, Chinese battery maker CATL announced that it has suspended its operations at a lithium mine in Jiangxi province because the mine’s license had expired. That mine alone reportedly accounts for around 3 percent of the world’s projected lithium output for 2025. The suspension produced surges in lithium prices on world markets. In recent months, lithium prices have become volatile, not least because China is signaling that it is considering supply-side reforms that could impose limits on its production. CATL stated that it is actively seeking to renew the license.
Pilot-scale biomanufacturing facility coming to Iowa. On August 15, BioMADE, a nonprofit public-private partnership that focuses on advancing bioindustrial manufacturing in the US, announced plans to build and operate a 15,000 SF pilot-scale bioindustrial manufacturing facility near Ames, Iowa. The facility will feature dry and wet lab space, up to 10,000-liter industrial fermenters, and downstream processing capabilities to aid in developing agricultural bioproducts, chemicals, food and other products. In a press release, BioMADE stated that the US bioindustrial manufacturing industry “currently faces a scale-up challenge due to a critical lack of pilot- to demonstration-scale infrastructure” and manufacturers seeking to innovate “often have to seek relevant facilities overseas.” In developing the Iowa facility, BioMADE worked with the US Department of Defense, Iowa State University, the Iowa State University Research Park, and the Iowa Economic Development Authority. The Ames facility will become the third site in BioMADE’s national Pilot Plant Network that will allow “innovative companies of all sizes to take their processes to the next level” as they move to achieve full-scale domestic commercial manufacturing. Earlier this year, it announced demonstration-scale biomanufacturing facilities for sites in Hayward, California, and Maple Grove, Minnesota.
DOJ memo provides guidance on prohibited discrimination practices for federal contractors and federal funds recipients. United States Attorney General Pam Bondi recently issued a memorandum to all federal agencies, “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination,” which, while not legally binding, offers insight into how the United States Department of Justice will interpret federal anti-discrimination law. The five practices outlined in the memorandum could, it states, result in revocation of grant funding and/or discrimination liability. Read our alert to learn more.
Report: For the first time, China invests more on foreign EV plants than domestic ones. An analysis by Rhodium Group found that, in 2024, Chinese EV companies invested more in building factories outside China than they did domestically—a first for such companies. Between 2022 and 2024, Chinese EV manufacturers spent over $140 billion on manufacturing projects, but total annual spending has declined sharply in recent years, dropping from $90 billion in 2022 to about $15 billion in 2024. The report highlights that nearly three-quarters of this foreign direct investment was directed at developing battery factories, with an increasing share going to new vehicle assembly plants. Rhodium Group also noted concerns in China that these overseas investments may be excessive offshoring and contribute to technology leakage.
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