Joe Biden will use Korean War-era power to boost supply of battery minerals for electric vehicles

Joe Biden will use Korean War-era power to boost supply of battery minerals for electric vehicles

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U.S. President Joe Biden will invoke Korean War-era powers to boost domestic supplies of minerals vital to electric vehicles and large-capacity batteries as his administration seeks to reduce its reliance on overseas energy sources.

Biden will use a presidential resolution as early as this week to invoke the Defense Production Act to help increase U.S. supplies of lithium, nickel, cobalt, graphite and manganese.

For example, under the terms of the DPA, the government can force companies to prioritize government contracts over private contracts, or provide loans and grants to boost manufacturing.

A person familiar with the White House plan said the administration was not considering outright purchases of the minerals, but instead aimed to provide government funding for mining feasibility studies and safety upgrades, as well as production of the minerals from existing mining waste.

Triggering the DPA would not allow mining companies to bypass or expedite any permitting or environmental review processes, the person said.

The United States imports the vast majority of minerals that the White House intends to add to the list of items covered by the DPA.

Biden ordered Review critical supply chains Early last year, he sought to reduce U.S. reliance on China for a range of imports deemed important to national security, including minerals, medicines and computer chips.

The U.S. Department of Energy released a blueprint last year specifically aimed at revitalizing the country’s Domestic battery supply chain And predicts that the electric vehicle boom will lead to a surge in demand for batteries over the next decade.

It proposes to ensure the U.S. has access to the raw materials needed to make batteries by providing incentives for “safe, fair and sustainable” domestic mining and investing in research into ways to capture minerals by recycling waste or expired batteries.

In its paper, the Department of Energy states, China dominates Supply chain for lithium battery manufacturing, including mineral processing.

Last month, the U.S. Department of Energy said it would provide nearly $3 billion to companies in the U.S. battery-making supply chain to help scale up production.

Biden’s Infrastructure ActThe bill that passed Congress last year also provided $7 billion over five years for mineral processing and recycling of end-of-life batteries.

Former President Donald Trump invokes DPA to raise Medical Supplies Related to Coronavirus at the height of the epidemic.

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