[Made in America] Supply Chain Of Key Minerals

The minerals targeted by this administration include rare earth elements, lithium and cobalt, which exist in products ranging from personal rechargeable electronics, television screens to household appliances, as well as products used in clean energy technologies, such as batteries, electric vehicles, wind turbines and solar cell panels. Given the world's transition to a clean energy economy and the global demand for these key minerals, the Obama administration believes this effort is crucial. The United States is increasingly dependent on foreign sources for processed minerals. In particular, the US government pointed out that the demand for minerals such as lithium and graphite for electric vehicle batteries is expected to increase by up to 400%.

A year ago, the United States signed executive order 14017, requiring an assessment of the weaknesses of the supply chain of key minerals and materials in the United States. The subsequent supply chain assessment found that the United States relied too much on foreign resources and rival countries in key minerals and materials, posing a threat to national and economic security.

According to a White House briefing, "the government has taken action across the federal government to ensure a reliable and sustainable supply of key minerals and materials while upholding the government's labor, environmental and environmental justice and equity priorities." It will be achieved by: (I) updating outdated mining laws and regulations through the establishment of an interdepartmental working group of the Ministry of the interior, which will lead the government in legislative and regulatory reforms on mining licensing and supervision and submit its recommendations to Congress by November; (II) update and prioritize the federal list of key minerals, including minerals that are critical to the economy or national security and vulnerable to damage, and instruct federal agencies to give priority to the production and processing of minerals in accordance with their environmental, social and labour principles; Strengthen the storage of key minerals by better coordinating storage activities to support the U.S. transition to clean energy and its national security needs.

On the private side, the government stressed that the federal government had awarded MP materials $35 million for the separation and processing of heavy rare earth elements, and announced that it would invest an additional $700 million in the magnet supply chain. In addition, Berkshire Hathaway energy renewables will break ground to test the feasibility of the sustainable mining process of lithium, which is part of the multi billion dollar investment in sustainable lithium production. Redwood materials will cooperate with Ford and Volvo to discuss the pilot. It is used to collect and recycle discarded lithium-ion batteries.

Squire Patton Boggs will continue to oversee the Biden administration's efforts to promote domestic production of key minerals and materials.

The industry front believes that these measures are actually a branch of trade friction initiated by the United States.