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Last Updated, Apr 4, 2022, 11:07 AM
Biden to activate Defense Act to produce US EV batteries, clean energy


WASHINGTON D.C.: The Biden administration plans to invoke the Defense Production Act (DPA) to support the mining and processing of key minerals used in batteries for renewable energy and electric vehicles, including nickel, lithium, cobalt, graphite, and manganese.

“The President is also reviewing potential further uses of DPA, in addition to minerals and materials, to secure safer, cleaner, and more resilient energy for America,” the White House said.

Biden made the announcement as part of the overall efforts aimed at addressing surging energy prices, and to reduce reliance on Russian imports since Vladimir Putin’s invasion of Ukraine, as well as the Biden administration’s long-term climate goal to create a clean power grid by 2035.

The DPA will enable Biden to respond to a national emergency by requiring companies to prioritize federal contracts for essential goods and materials.

The act also prioritizes the production of materials for batteries that are essential for cleaning up the transportation sector and the power grid, the two leading sources of climate pollution.

Since Russia’s invasion of Ukraine, securing nickel supplies has become a major priority. The U.S. has one high-grade nickel mine operating in Michigan, which could run out of deposits by 2025, reported The Wall Street Journal.

Some lawmakers and advocacy groups, including 200 environmental and humanitarian groups that sent a letter to the White House on 9th March, have urged Biden to use the DPA to promote more technologies that support a transition to clean energy.

Democratic senators, including Elizabeth Warren, Cory Booker and Ed Markey, also sent a letter to Biden on 23rd March suggesting that the U.S. should utilize the DPA to “support and increase manufacturing capacity and supply chain security for technologies that reduce fossil fuel demand.”

Biden has already banned oil and gas imports from Russia. The EU, which is far more reliant on fossil fuels from Russia than the U.S., plans to distribute 10 million heat pumps over the next five years to reduce reliance on Russian gas imports.

“Due to the humanitarian, energy, and economic crises caused by Russia’s invasion of Ukraine, we urge you to use all the tools and authority at your disposal to provide relief to our residents and allies and take preemptive steps to limit future instability caused by climate change and conflict funded by fossil fuel profits,” the senators wrote.

Securing supply chains for metals and critical minerals was already a top priority for clean energy advocates before the start of the war in Ukraine.

The U.S. has also increased its exports of liquified natural gas to Europe, as the EU tries to wean itself off its reliance on Russian energy products.

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