It’s been a long time coming, but maybe the message will finally get across: the U.S. can’t build a domestic EV industry without accelerating the timeline to get a mine off the ground. As reported by mining.co, US auto maker Ford has written to the U.S. government with a request to speed up the permitting process for critical metals mining. The letter stated that the “lengthy, costly and inefficient permitting process” is making it difficult to invest in the extraction and processing of critical minerals.
The Biden administration has talked a big game about reshoring supply chains and reducing dependence on overseas sources but as I’ve written multiple times, the permitting process for new mines is too long in the U.S.
In theory, the U.S. has what it needs. There’s nickel in the ground and plenty of demand but just too many hurdles to starting up a new mine. The Feds seem to now be aware that something has to change and have been making suggestions like permitting reform, incentives for domestic refining, and even invoking national security powers to speed up development. But the (lack of) results speak for themselves.
Meanwhile, Indonesia, The Philipines, and the Russians, to name just the biggest places, are racing ahead with plenty of government backing and fewer bottlenecks.
Until permitting becomes more streamlined, the U.S. government can issue all the statements it likes but little will change other than the increased scale of imports.
Anthony Milewski
Chairman, Nickel 28 Capital
