[USA] Biden invokes Defense Production Act to boost domestic battery manufacturing

On March 31, 2022, President Biden invoked the Defense Production Act (DPA) to spur domestic mining and processing of minerals used to make batteries for electric vehicles (EVs) and energy storage facilities.[1] The DPA is a Cold War-era law that gives the president significant emergency authority to bolster domestic industries.[2] The move is part of a two-part path designed to address rising energy costs caused by the Russian invasion of Ukraine; in addition to using the DPA, Biden ordered the release of up to 1 million barrels a day for six months from the Strategic Petroleum Reserve. According to the White House press release, the DPA will support lithium, nickel, cobalt, graphite, and manganese production and processing. The Department of Defense will “implement this authority using strong environmental, labor, community, and tribal consultation standards.” The White House statement also noted that the administration is considering using the DPA to address other parts of the energy sector.


[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/31/fact-sheet-president-bidens-plan-to-respond-to-putins-price-hike-at-the-pump/?utm_campaign=Press%2FMedia%20Outreach&utm_medium=email&_hsmi=208653202&_hsenc=p2ANqtz-_Q0ffmJOHAWL-D7Z5LZ4VFTUukayztJICXlTevL7e6II-icdY2-T-kjPVquu2pH3CCyJyxMsJ53deXsGO8Xs6ApKqCHkLboVha6umJvzJ2zQZfxe0&utm_content=208653202&utm_source=hs_email

[2] President Biden has previously invoked the DPA to respond to the COVID-19 pandemic. For example, Biden used the DPA to bolster vaccine supply.