Biden’s ‘Made in America’ for EVs Spurs Use of Rare Earths

Biden's 'Made in America' slogan in the field of electric vehicles (EVs) would spur the use of rare earths. US Washington Times's article said Biden's 'Made in America' for electric vehicles would benefit China, or it will make China increased America’s dependence on this communist country. China not only occupies most of the global production of advanced batteries but also abundant with the rare minerals required to manufacture these batteries.

The White House is working with Democrats in Congress to ensure that its infrastructure plan includes at least $174 billion in 'Made in America' electric car plans. Among them, at least 40 billion U.S. dollars will be used to install electric vehicle charging piles across the United States. The plan "will enhance our national security interests and enable us to win the global competition with China in the next few years," the US president said recently.

However, experts say that the Biden administration's embrace of electric vehicles may benefit China. "At present, Beijing leads any other country in producing electric vehicle batteries," said Dan Keish, a senior researcher at the American Energy Research Institute. In order for EVs to replace fuel engines, American car companies need to import large amounts of resources and technologies from China.

Beijing will build at least 107 lithium battery super factories by 2030, of which at least 53 have been put into operation. During this period, the United States is expected to build 9 similar factories, of which 3 have already been put into production. This means most of the electric vehicles produced in the United States will rely on key components imported.

Kish, a former energy and environmental policy adviser to the U.S. House of Representatives implied the current production of lithium in the United States is not enough to support the battery manufacturing industry for electric vehicles.

If the Biden administration's electric vehicle offensive is successful, the United States will face a risk of becoming more dependent on China. However, analysts and industry executives said that although dozens of Western companies are striving for government support, it is difficult for them to establish a rare earths magnet supply chain.

Analysts said that Western companies are still several years away from a stable supply of rare earths, or processing rare earth elements into independent minerals and turning them into useful products such as magnets. The proposal of Biden’s ‘Made in America’ in the field of EVs may make China's advantage in the rare earth industry more distinct.

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