Biden to invoke Defense Production Act for electric vehicle battery materials
By Zack Budryk - 03/30/22 03:44 PM EDT
President Biden is set to invoke the Defense Production Act (DPA) as early as this week to step up production of minerals used in the manufacture of electric vehicle batteries, a source familiar the plans confirmed to The Hill.
Biden is set to issue a presidential determination to stoke domestic production of the minerals, which are used for both stationary batteries and vehicles. The person emphasized that the production will not bypass existing permitting or environmental review processes.
Biden adding certain minerals, such as lithium, cobalt, graphite, nickel and manganese, to the list of items covered under the law could give mining companies access to some $750 million under the DPA’s Title III fund, the person told The Hill.
The DPA, initially passed during the Korean War to boost aluminum and titanium production, grants the president authority to order domestic production ramped up of certain supplies. Then-President Trump invoked it during the COVID pandemic for meat production, while Biden used it shortly after taking office to ramp up production of pandemic-related supplies.
The person familiar told The Hill the White House will implement the order in collaboration with the Energy and Interior Departments. The law will not be invoked for loans or direct purchases, but rather funding for “feasibility studies, co-product and by-product production at current operations, and productivity/safety modernizations.”
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https://thehill.com/policy/energy-environment/600401-biden-to-invoke-defense-production-act-for-electric-vehicle-battery
