US President Joe Biden
The US administration has announced that it will invoke Cold War powers to boost domestic production of materials for batteries needed to power electric vehicles (EVs) and the transition to renewable energy, a move intended to improve US competitiveness in a market dominated by China.
The decision adds lithium, nickel, cobalt, graphite, and manganese to a list of items covered by the 1950 Defense Production Act. It’s the same authority used by former President Donald Trump to spur mask production to tackle the pandemic and Harry Truman to make steel for the Korean War.
This could help mining companies access $750-million under the Defense Production Act’s Title III Fund. Industries supported by large-capacity batteries, including transport and the power sectors, account for more than half of the US carbon emissions.
The move also illustrates the tightrope President Joe Biden walks on this issue. On the one hand, climate-change activists, environmentalists and indigenous groups oppose many mining projects due to the impact on water supplies and nearby communities. On the other, the US would need a big increase in domestic mining projects to begin providing even a fraction of the metals and materials that will be needed to supply the oncoming wave of EV production.