President Joe Biden is poised to invoke as soon as this week Cold War powers to encourage domestic production of critical minerals for electric-vehicle and other types of batteries, according to people familiar with the matter, Bloomberg reported.
The White House is discussing adding battery materials to the list of items covered by the 1950 Defense Production Act – the same authority wielded by Harry Truman to make steel for the Korean War and Donald Trump to spur mask production to tackle the coronavirus pandemic – the people said. They asked not to be identified because the details are not yet public.
Shares of MP Materials Corp., the sole U.S. company that produces rare earth metals needed for electric vehicles, and Lithium Americas Corp., which runs a project in Nevada, surged on news of the administration’s plans. Piedmont Lithium Inc., which runs a project in North Carolina, erased losses, rising as much as 6 percent
Adding minerals like lithium, nickel, graphite, cobalt and manganese to the list could help mining companies access $750 million under the Defense Production Act’s Title III fund, the people said. The move also could aid recycling of battery materials, one of the people said.
To read the full report from Bloomberg via Automotive News click here.
