President Trump will use the Defense Production Act to “boost American mineral production,” according to the White House. The President’s executive order will “boost American mineral production, streamline permitting, and enhance national security.” Some of these minerals are sourced internationally, from countries like China, and used in producing electric car batteries. Previously, President Biden also encouraged domestic EV battery and mineral production during his term, incentivizing automakers who sell EVs Stateside to produce and source their batteries in the US.
Trump Administration Will Provide Financial Support For Domestic Mineral Production
Trump’s use of the Act will allow the U.S. International Development Finance Corporation, in conjunction with the Department of Defense, to provide new financing for mineral projection projects inside the U.S. In some cases, these projects may begin on previously unused federal lands — the Secretary of Defense, Secretary of Energy, Secretary of Agriculture, and Secretary of the Interior were told to identify “additional sites” for mineral production that can be permitted as soon as possible. The order also encourages federal agencies to “expedite the review and advancement” of a plan of operations, permit application, or any other approval request to an agency.
Additionally, the White House said that new recommendations would be provided to Congress regarding the treatment of mine waste, tailings, and waste rock under the Mining Act of 1872. The law essentially codified an informal system of organizing and protecting mining claims laid down by prospectors during the California and Nevada gold rush of the middle 1800s. It authorizes the mining of economic materials like gold and other precious resources on federal public lands. The White House’s statement clarified that minerals may include uranium, copper, potash, gold, and coal, among other rare earth metals.
Trump Seeks To Curb Rare Earth Imports
The Trump Administration is looking to reduce U.S. dependence on imports of critical minerals like the ones used in EV battery production. The White House states that the U.S. is “100-percent import-reliant on at least 15 critical minerals,” and that 70 percent of our imports of rare earth metals come from China, in spite of the US’ “vast supply” of critical minerals. President Biden followed much the same logic, using the same Defense Production Act to encourage at-home development of U.S. battery manufacturing for the auto and tech industry, alongside his Inflation Reduction Act, which provided tax rebates for buyers of EVs, but only if that EV’s parts content was largely American-produced or sourced.
TopSpeed’s Take
It’s likely Trump’s executive order will continue pushing the U.S. toward domestic mineral production. President Biden did the same, and the issue is largely a bipartisan one. It is possible it will also lead manufacturers to continue investing in battery production within the U.S. Many, like Ford and BMW, already source their materials and produce the batteries domestically.
Read the full article here
