Following Joe Biden’s appeal to the Defense Production Act yesterday, nickel expert Trent Mell praises the President’s decision to increase domestic production and sourcing of materials for electric vehicles.
Speculation earlier in the week suggested President Biden was considering using the Defense Production Act for the second time in his presidency to help domestic companies source materials for electric vehicles in the United States. In recent months, material prices have risen sharply due to various issues, most notably the Russia-Ukraine conflict. Nickel, one of the key materials for future electric vehicle production, rose from $30,000 to $100,000 on the London Metal Exchange in early March, causing a temporary halt to trading.
The United States has long been dependent on foreign sources of materials, although it has mines for many primary EV materials in the US. However, the inflation of these crucial materials has caused their prices to rise. Tesla is just one example of these price hikes, as CEO Elon Musk said “inflationary pressures” would affect prices going forward. Tesla announced price increases for all four of its vehicle models the next day.
As a result, mining experts like Mell called for production of EV materials to be sourced domestically, or at least in North America. Not only would it help control costs, but it would also help EV companies based in North America to obtain sustainably and responsibly sourced materials for their products.
After Biden invoked the Defense Production Act, Mell’s desires for domestic material production become more realistic.
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“I am encouraged by this recent action and what it may mean for the Idaho Cobalt Belt,” Mell said in an emailed statement to Teslarati. “We cannot achieve a low-carbon future without new nickel, cobalt and lithium mines. Building mines in America is important to our national security and our industrial interests, and we can achieve our clean energy ambitions in a safer, cleaner and more responsible manner.”
Biden’s memo, released yesterday, says his decision to invoke the law is based on ensuring “a robust, resilient, sustainable and environmentally conscious domestic industrial base capable of meeting the demands of the clean energy industry, such as the production of large-capacity batteries.” is becoming essential to our national security and the development and maintenance of domestic critical infrastructure.” While vehicle manufacturers in the United States produce some electric vehicles domestically, many of the parts and materials are sourced from other countries. For example, China produces the largest quantity of lithium-ion batteries, and CATL, a China-based Tesla supplier, is the world’s largest single producer of the cells.
“The United States depends on unreliable foreign sources for many of the strategic and critical materials required for the clean energy transition — such as lithium, nickel, cobalt, graphite and manganese for large-capacity batteries,” Biden wrote. “Demand for such materials is expected to increase exponentially as the world transitions to a clean energy economy.”
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Mining expert credits Biden for invoking law to increase domestic production of EV materials
