Biden may use Defense Production Act to boost EV battery material production
US President Joe Biden may use the Defense Production Act in the coming days to boost production of materials used in electric vehicle batteries.
The Defense Production Act of 1950 was used in response to the start of the Korean War, ratified by the 81st United States Congress. The Act, which has been reauthorized more than 50 times, has three sections. The first authorizes the President to require businesses to accept and prioritize materials that may be deemed necessary for national defense. It prohibits hoarding or price fixing, which can be used to increase profits. Anyone who does not comply with the orders of the first section may be charged with a felony and fined up to $10,000 and/or one year in prison.
The second clause empowers the President to establish rules, orders or agencies that will allocate materials.
The third and final clause gives the president control of the civilian economy so that scarce or critical materials are available for defense needs. Biden invoked the Defense Production Act for a second day in his office to ramp up production of supplies related to the COVID-19 pandemic, such as protective clothing.
A new report from this morning bloomberg There are suggestions Biden could use the Defense Production Act as early as this week. A person familiar with the president’s plans said the Biden administration could incorporate materials commonly used in EV batteries, such as lithium, nickel, graphite, cobalt and manganese, to help companies obtain funding to mine the material. be able to help. Funding under the Act’s Title III Fund could be as high as $750 million and also aid in the recycling of battery materials, as companies such as Redwood Materials have sprung up in the project.
Companies will not have free reign to mine the irresponsible ways Biden signed off on the act. Manufacturers and mining companies responsible for obtaining the material will still be subject to normal environmental review procedures. According to the person, the Department of Energy and the Department of the Interior will oversee this effort.
The Biden administration has already set aside $6 billion of its infrastructure bill to help the United States battery supply chain overcome its reliance on foreign suppliers, especially China. Bringing the EV manufacturing process back to the United States would not only help with jobs, but would also eliminate the critical need for other countries to supply materials for US-made EVs.
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