Let’s get that electric revolution in gear!
The United States is planning to launch a national electric vehicle supply chain strategy, with the help of automakers and lithium miners. In fact, the US government will be holding a meeting between executives of various companies this May to begin formulating the plan to nationalize the supply for electric vehicles.
The reason for this is lack of sufficient minerals that can be used by electric-focused automakers like Volkswagen and Tesla in creating the necessary materials for their vehicles. Billions of dollars are being spent on research & development to innovate technology, but companies are still forced to rely on imports since supply in the US is not enough to sustain everyone.
According to a report from Reuters, government agencies and lawmakers are pushing to develop more domestic mining and manufacturing facilities in the country.
In terms of global supply, China is the dominant force in this sector. Information from Benchmark Minerals Intelligence reveals that China controls most of the world’s lithium processing facilities, producing around two-thirds of the world’s lithium-ion batteries. Since the US produces only about 5%, automakers are forced to import from overseas. In fact, US imports of lithium have almost doubled since 2014.
Managing director of Benchmark Mineral Intelligence, Simon Moores, says, “The U.S. controls none of the mining involved with nickel, cobalt, and graphite [around the world] and less than 1-percent of lithium. The question is: does the U.S. want a role or does the U.S. have a role in global energy storage solutions?”
In a statement to Reuters, Senator John Hoeven of North Dakota, who’s also a member of the Senate’s Energy and Natural Resources Committee says, “We need to find ways to more efficiently develop our nation’s domestic critical mineral supply because these resources are vital to both our national security and our economy.”
President of Lithium Americas Jonathan Evans, also adds, “There’s a real opportunity in the electric vehicle supply chain if the United States wakes up.”