[USA] Biden-Harris administration invests additional $10 Million to build domestic supply chain for critical minerals and materials

On July 16, 2024, The Biden-Harris administration announced investments in two projects at the California Institute of Technology and the University of Utah, that will help mitigate the costs and impacts of producing rare earth elements and critical minerals and materials, from coal and coal by-products. [1] The Biden administration’s Investing in America agenda intends to use these projects as a means to develop more affordable and sustainable production processes while creating good-paying jobs in the energy industry. The initiative will help meet growing demand for critical minerals and materials in the US and also reduce domestic reliance on foreign supply chains. Currently the US imports 80% of rare earth elements despite having 250 billion tons of coal reserves originating from coal by-products and coal waste, and the DOE believes that they can be harnessed to establish a sustainable supply chain that supports the economy, clean energy, and national security.

Managed by the DOE’s National Energy Technology Laboratory, the separation technology will refine rare earth elements in order to extract minerals from unconventional sources, such as coal. As part of the President’s Justice40 Initiative, these projects will also ensure that 40% of the overall benefits of certain federal investments in climate, clean energy, and other areas flow to disadvantaged communities who are disproportionately impacted by pollution and underinvestment. This effort is part of a broader strategy by the DOE’s Office of Fossil Energy and Carbon Management, which has committed $151 million to minimizing the environmental impacts of fossil fuels while working to achieve net-zero emissions across the US.

[1] https://www.energy.gov/articles/biden-harris-administration-invests-additional-10-million-build-domestic-supply-chain

[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.