Biden invokes Defense Production Act to advance domestic materials sourcing for sustainable energy

President Joe Biden has invoked the Defense Production Act to push for the production of materials domestically. The act, which has been pushed more than fifty times since its inception in 1950, would provide funds for companies to pursue responsible domestic mining and processing of materials needed for sustainable energy.

It was rumored earlier this week that Biden was considering enacting the act to end reliance on foreign materials for things like large-capacity batteries. In an official memo to the White House, Biden wrote that he would officially launch the Defense Production Act of 1950.

Biden may use Defense Production Act to boost EV battery material production

Biden wrote in the memo that it was his administration’s policy to ensure a “strong, resilient, sustainable and environmentally responsible domestic industrial base to meet the requirements of a clean energy economy, such as the production of large-capacity batteries.” It is necessary for the development and protection of our national security and domestic critical infrastructure.” As electric vehicles continue to gain market share within the United States, materials used for EV batteries, such as lithium, nickel, cobalt, graphite and manganese, are more often sourced from overseas rather than domestic companies.

“The United States relies on unreliable foreign sources for many strategic and critical materials needed for the clean energy transition – such as lithium, nickel, cobalt, graphite, and manganese for large-capacity batteries. Demand for such materials is accelerating. is projected to grow as the world transitions to a clean energy economy.”

This act will help in ensuring reliable and sustainable supply of critical materials. It will also help control costs, as rising prices of some materials, such as nickel, have skyrocketed due to the conflict in Ukraine.

Nickel experts such as Trent Mell, CEO of Electra Battery Materials, have called for an increase in domestic production of the material. For example, nickel is mined mostly in Indonesia, the Philippines, and Russia. However, the United States and Canada are healthier with nickel mines, and there are other materials that are highly prevalent in North America that could eliminate dependence on foreign suppliers.

mail told Teslarati

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Biden invokes Defense Production Act to advance domestic materials sourcing for sustainable energy