US Advances America Supply Chain for Lithium, Rare Earth

As the world transitions to a clean energy economy, global demand for critical minerals such as lithium and rare earth will surge 400-600% over the next few decades, and demand for minerals used in electric vehicle (EV) batteries will increase even more - by as much as 4,000%. The US is actively promoting an "America Supply Chain" supply chain for key minerals.

Globally, China controls most of the market for the processing and refining of key minerals. In addition to working with partners and allies to diversify sustainable sources, the report recommends expanding domestic extraction, production, processing, and recycling of key minerals and materials, all with a focus on promoting strong labor, environmental and environmental justice, community engagement, and tribal consultation standards.

Recently, President Biden will meet with administration and state partners, industry executives, community representatives, labor leaders, and California Governor Gavin Newsom to announce major investments in the production of critical domestic minerals and materials, ensuring that these resources benefit communities and create well-paying union jobs in sustainable production. These initiatives include:

(1) The US Department of Defense has awarded MP Materials $35 million to separate and process heavy rare earth elements at its facility in Mountain Pass, California, to create a complete end-to-end domestic permanent magnet supply chain. At the same time, MP Materials will invest an additional $700 million through 2024 and create more than 350 jobs in the magnet supply chain.

(2) Berkshire Hathaway Energy Renewables (BHE Renewables) will build a new demonstration facility in Imperial County, California to test the commercial viability of their sustainable lithium extraction from geothermal brine as part of multi-billion dollar investment in sustainable production over the next five years.

(3) Redwood Materials discusses a pilot partnership with Ford and Volvo to collect and recycle end-of-life lithium-ion batteries at their facilities in Nevada to extract lithium, cobalt, nickel, and graphite. Includes a joint venture with Ford to establish a recycling facility in Tennessee.

(4) GM will purchase lithium, rare earth, etc. for electric vehicle batteries from Controlled Thermal Resources (CTR). The companies are also working with the state-mandated Lithium Valley Commission to develop a royalty structure that will invest profits from their operations in infrastructure, health, and education investments for the residents of the surrounding area.

In addition, Tesla intends to source high-grade nickel for electric vehicle batteries from Talon Metals' Tamarack nickel project in Minnesota, for which Talon Metals and the United Steelworkers (USW) have established a workforce development partnership to train the next generation of skilled workers in local communities and mining areas facing declining demand in the US.

• < Prev
• Next >