Critical Minerals and Energy Intelligence

Booster for US Battery Metal Hopefuls

As part of the recently invoked Defense Production Act (DPA) the U.S. Administration has added another $500 million to encourage domestic development of EV and green tech supply chains, including critical minerals like nickel, lithium, cobalt, and graphite. This adds to the $750 million previously made available when Biden first invoked the DPA back in March. The bill also broadened eligibility, opening the door for partnerships with allies like the UK and Australia.

In an interview with Bloomberg on the subject, Ben Steinberg, a lobbyist for mining firms, said that the demand for funding will far exceed what’s available. The extra cash won’t solve everything but it will help.

I applaud the attempt by the government. There is genuine (bipartisan) political support for ramping up US security of supply in critical metals. However, trying to meet targets like half of all new cars and light trucks sold in the U.S. being zero-emission by 2030 is going to require a massive increase in EV production with a correspondingly vast increase in battery metal consumption. If the U.S. is serious about meeting that sort of target, it’s going to require more money and some determined action in terms of streamlining permitting for new exploration, development, and production. Until that’s factored in, it’s hard to see things changing at any semblance of rapidity.

Anthony Milewski

Chairman, Nickel 28 Capital

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