Snapshot
U.S President Joe Biden announced on Thursday (Mar 21) that he will invoke powers under the Cold War era 1950 Defence Production Act in a bid to boost domestic production of materials for batteries required to power electric vehicles and the transition to renewable energy.
The decision adds lithium, nickel, cobalt, graphite, and manganese to a list of critical items covered by the 1950 Defence Production Act.
The move is expected to facilitate mining companies to access $750 million under the Defense Production Act’s Title III fund.
U.S President Joe Biden announced on Thursday (Mar 21) that he will invoke powers under the Cold War era 1950 Defence Production Act in a bid to boost domestic production of materials for batteries required to power electric vehicles and the transition to renewable energy.
The decision adds lithium, nickel, cobalt, graphite, and manganese to a list of critical items covered by the 1950 Defence Production Act.
The move is expected to facilitate mining companies to access $750 million under the Defence Production Act’s Title III fund.
U.S heavily depends on overseas sources for many of the strategic and critical materials necessary for the clean energy transition — such as lithium, nickel, cobalt, graphite, and manganese for large-capacity batteries. Demand for such materials is projected to increase exponentially as the world transitions to a clean energy economy.
Biden said that production of large-capacity batteries for the automotive, e-mobility, and stationary storage sectors are essential to the national defence.
Biden’s move is set to pave way for easing of regulations for domestic mining and processing of critical battery metals , recycling and reuse and recovery from unconventional and secondary sources, such as mine waste.
“It is the policy of my Administration that ensuring a robust, resilient, sustainable, and environmentally responsible domestic industrial base to meet the requirements of the clean energy economy, such as the production of large-capacity batteries, is essential to our national security and the development and preservation of domestic critical infrastructure.” Biden noted.
U.S has faced challenges in domestic production of critical minerals due to strident opposition from environmental groups, climate change activists, indigenous right protection group and local communities.