May 26, 2022

President Joe Biden is activating the Defense Production Act to protect American sources of critical minerals and materials such as lithium, nickel, cobalt, graphite and manganese, which are used to make electric vehicle batteries and store energy.

The order comes in response to rising gas prices and supply chain restrictions caused by Russia’s war in Ukraine. It’s also part of Biden’s broader plan, which his administration is calling “Putin’s price hike” at the gas station. Biden also called for a historic release from the country’s Strategic Petroleum Reserve to boost domestic oil production and bridge the crisis.

“Putin’s war of choice means less oil is entering the market, and a lack of supply is pushing up prices for Americans at gas stations,” the newsletter said.

According to the American Automobile Association, Americans pay an average of $4,225 a gallon at a gas station on Thursday, up from $2,859 a year ago.

The Defense Production Act allows the President to prioritize federal government orders to private companies, allocate supplies for national defense, and take action to limit supplies of emergency supplies. As Biden calls for increased domestic production, his administration could provide loans to U.S. companies that mine and process battery materials, make purchases, or even require companies to coordinate permits with each other, which could otherwise become an antitrust issue.

“The Defense Production Act can provide capital for the exploration, mining, refining, and production of lithium and other minerals for electric vehicles and stable batteries to strengthen the foundation for America’s clean energy transition,” Kelly Hope. said Miklosky, head of communications for U.S. chemical company Albemarle, gaming-updates.

Albemarle recently began evaluating the possibility of restarting lithium mining at its Kings Mountain site, according to Hop-Miklosky, who also noted that the company is working on projects with Silver Peak, Nevada and Kings in the US. Ready to cooperate with the state. Carolina source.

Today, about 60% of Albemarle’s lithium is used for energy storage, such as electric vehicles, power grids and electronics.

“Given the rapid growth in demand for electric vehicles, we are substantially increasing our global conversion capacity to meet the need for lithium-ion batteries,” said Hope-Miklovsky,

It is not clear how widely the Defense Production Act is applied. It is likely that companies seeking to ensure the safety of battery materials and battery manufacturers will also receive support. Tesla has been making batteries in the US for several years now, and many other automakers such as Toyota, General Motors, Stelantis, Ford, and Volkswagen are planning to build battery factories in the US, often in the form of LG Chem, SK. Innovation, joint venture with foreign companies such as Samsung and Panasonic.

While “the Department of Defense will enforce this permit using rigorous environmental, labor, community and tribal advisory standards,” some climate activists fear that the rapid production of precious minerals through mining processes will lead to the next gold rush that will eventually will. greater environmental damage.

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