![]() ![]() According to Value Walk Premium, the U.S. The Inflation Reduction Act offers electric vehicle buyers a $7,500 tax break if they share the car’s “critical battery materials” obtained or processed in the United States,” reports.īut building a secure supply chain doesn’t happen overnight. Earlier this year, President Joe Biden invoked the Defense Production Act to provide loan guarantees, tax credits and other federal aid to create new domestic battery metal mines. This realization convinced the White House that government action was necessary. But new mines aren’t opening fast enough, and auto industry experts warn that a lithium shortage could derail electric vehicle (EV) production just as it’s taking off.Īlso Read : Ukraine alleges Russian dirty bomb deception at nuke plant The IEA expects lithium demand to increase by as much as 40 times its 2020 level, requiring an additional 50 new lithium mines worldwide. The explosive growth of electric vehicles, particularly in China, has seen the global price of lithium jump 678% over the past two years – and is likely to accelerate as the transition to electrified transport progresses. The lithium sticker shock has already arrived. Many copper mines have been depleted and are running out of resources, according to the US Geological Survey. One nickel mine, one rare earth mine, one cobalt mine. There is currently only one operating lithium mine in the United States. This will require the development of hundreds of new mines. The International Energy Agency (IEA) report states that production of battery metals and minerals “needs to increase tenfold to meet projected critical mineral needs by 2030,” according to a recent article on. The obvious answer is that we need to start producing more, not only to strengthen our supply chain security, but also to help our economy create thousands of good-paying mining and manufacturing jobs, bring millions of dollars into federal and state Treasury, reduce carbon emissions and allow America to become less dependent on China and Russia. Now is the time to ask: What are the most useful things the US government can do to strengthen our mineral and metals supply chains? Do we continue to rely on warring nations like China and Russia for materials needed for clean energy technologies, weapons systems, and consumer products? Or are we making more use of our own abundant resources in the United States?Īlso Read : U.S., Canada sanction Haitian politicians, accuse of gang ties American automakers have every reason to fear that China could use battery metals as a geopolitical weapon to dominate global markets.Īs OPEC once again tightens the screws on American energy consumers and cuts production to prop up oil prices, there is a sense that the geopolitics of the metals trade necessary for the energy transition may be as unpredictable as our dependence on the global oil cartel. China, the world’s leading maker of electric cars, has a strong grip on the global supply of metal for batteries, which sparked a frenzy earlier this year during a standoff over Taiwan and a few years earlier during tense trade negotiations with China. There are currently many questions about supply chains for battery metals such as lithium, cobalt, nickel and copper. For that to happen, however, the minerals and metals for the batteries that will be produced at Honda’s planned plant and other plants will have to be sourced and processed primarily in the United States, rather than imported from China and Russia. MARIETTA, Ohio - As Ohio grows into a manufacturing hub for electric cars and the lithium-ion batteries that power vehicles, automakers will need a secure supply of raw materials to keep assembly lines running.
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