Just weeks after U.S. Senators requested invoking Cold War powers to boost domestic production amidst mineral supply issues, it seems that Washington will answer.
U.S. President Joe Biden may invoke the 1950 Defense Production act to bolster the production of minerals needed for electric vehicle (EV) batteries, according to Automotive News.
The act would let EV battery materials such as lithium, nickel, graphite, cobalt and manganese to the list of included production supplies.
A move to add the supplies would also effectively give mining companies access to some $750 million in funding from the act’s Title III fund, according to people familiar with the subject.
Tesla Has Secret Nickel Supply Deal from Vale, Says Report https://t.co/9atTkuwUog
— TeslaNorth.com (@RealTeslaNorth) March 30, 2022
The administration’s plans bumped stocks for U.S. mining companies including MP Materials Corporation, Lithium Americas Corporation and Piedmont Lithium.
In addition, a signed contract would give Congress more power to dedicate resources toward the effort.
In a statement, the head of Washington D.C. lobbying firm Ben Steinberg said, “The president’s signature is a big signal, but it’s incumbent on Congress to appropriate dollars that are commensurate with the challenge.”
Steinberg also added that the funding would be a “small piggy bank” due to the number of industries it must cover, including aerospace, defense and automotive, among others still.
Earlier today, it was reported Tesla has leveraged a secret deal to secure a nickel supply for its own EV batteries, and its supply chain issue management is seen as superior to other automakers.