About a week ago, I reported that China was beginning to limit its graphite exports, a key component of Electric Vehicle (EV) batteries.
It turns out Democrats are beginning to sense that the green energy dominoes are beginning to collapse and are desperate to begin resolving some of the “unintended consequences” of their policies.
Now Reuters is reporting two Democratic U.S. senators are urging the Energy Department to take steps to boost U.S. battery manufacturing and next-generation battery research, citing China’s dominance and export controls.
Senate Intelligence Committee Chair Mark Warner and Energy Committee Chair Joe Manchin cited experts saying that the United States is “ten to twenty years behind Asia in commercialization of battery technology,” and noted that China accounts for more than 75% of battery cell production.”The U.S. must become a leader in manufacturing batteries and battery components, while securing our supply chains for the materials that make up those components,” the senators wrote in a previously unreported letter seen by Reuters, citing China’s decision last month to restrict exports of graphite, critical to manufacturing battery anodes.China dominates the global EV battery supply chain including production of graphite – the single largest component.The letter noted in 2022 the United States produced less than 10% of lithium-ion batteries in 2022 and said demand is expected to grow over seven times by 2035.The letter wants a committee briefing by Dec. 1 “on ongoing research and development of next-generation battery technologies.”
James Morton Turner is a professor of environmental studies at Wellesley College and the author, most recently, of “Charged: A History of Batteries and Lessons for a Clean Energy Future.” Therefore, you might suspect Turner would be a big supporter of the Green New Deal Biden foisted on the American public via the “Inflation Reduction Act.”
In a recent opinion piece in The New York Times, the Wellesley College professor sounds like he has some supply chain regrets…which stem from insufficient domestic production.
What the Inflation Reduction Act hasn’t done, however, is spur similar investments in mining and minerals processing. Although it includes a 10 percent tax credit for critical minerals production (a category that includes graphite), about 2 percent of the newly announced investments are going toward mining and materials processing facilities. So as the United States expands investments in clean energy manufacturing, its dependency on global supply chains, dominated by China, will only grow.Building more diverse and resilient supply chains for critical minerals requires action at home and abroad. First, the United States needs to reduce the hurdles to investing in domestic mines and mineral processing facilities. While a new battery or E.V. factory can be brought online in a few years, identifying, permitting and commissioning mines and refineries often stretches out over a decade or more. Reforming permitting processes to ensure better engagement with local communities and expedited environmental reviews is urgently needed. Such reforms could help advance projects like Graphite One, a mine planned for Alaska’s Seward Peninsula.
Of course, it doesn’t help when Biden’s diversity hire for the Bureau of Land Management proposes 50-year mining bans.
The proposed mineral withdrawal would prevent new claims and developments in the area to safeguard Tribal lands, boost local recreation opportunities and support wildlife habitat connectivity.In a statement on Monday, the Department of Interior explained that Pueblos of San Felipe and Santa Ana had long sought protections for the Placitas area, which they consider ancestral and sacred lands. The site, located near the Albuquerque metro area, also provides close-to-home outdoor recreation opportunities and is popular for hiking, camping, sightseeing and hunting. The proposal would help protect, preserve and promote the scenic integrity, cultural importance, recreational values, and wildlife habitat connectivity within the Placitas area.“Today we’re responding to calls from Tribes, elected leaders, and community members who want to see these public lands protected,” said Secretary Deb Haaland.
There is some hope that domestic mining may become more popular among Democrats….as they have identified a way for the government to get its share of the profits.
The Biden administration is recommending changes to a 151-year-old law that governs mining for copper, gold and other hardrock minerals on U.S.-owned lands, including making companies for the first time pay royalties on what they extract.A plan led by the Interior Department also calls for the creation of a mine leasing system and coordination of permitting efforts among a range of federal agencies. This comes as The White House has been pushing to boost domestic mining for minerals needed for electric vehicles, solar panels and other clean energy.Under terms of an 1872 law, the U.S. does not collect royalties on minerals extracted from federal lands, a fact Democratic lawmakers and environmental groups have long lamented. The White House plan would impose a variable 4% to 8% net royalty on hardrock minerals produced on federal lands. The proposal needs approval by Congress — unlikely when the House is controlled by Republicans who have long opposed such fees.
Out: Diversity and cultural respect.
In: 4 to 8 percent return!
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