Biden’s Battery-Metal Push Does Nothing to Ease Mining Permit Bottleneck

image

(Bloomberg) — The U.S. is set to give the mining industry a key tool to boost domestic production of metals behind the energy transition — but nothing that speeds up efforts to dig ore out of the ground.

President Joe Biden is poised to add battery metals to the list of items covered by the 1950 Defense Production Act that could help mining companies access $750 million to fund production at existing operations, productivity and safety upgrades and feasibility studies, people familiar with the matter told Bloomberg. However, the changes to the act do nothing to streamline the permitting process.

It takes a about seven to 10 years to get a mine up and running in the U.S., compared to two to three years in neighboring Canada, according to the U.S. business group National Mining Association. The omission will frustrate mining companies when Biden is pushing to revive domestic production capacity while embracing a shift in the U.S. economy to less polluting energy.

“Unless we continue to build on this action, and get serious about re-shoring these supply chains and bringing new mines and mineral processing online, we risk feeding the minerals dominance of geopolitical rivals,” association President Rich Nolan said in an email. “We have abundant mineral resources here. What we need is policy to ensure we can produce them and build the secure, reliable supply chains we know we must have.”

The mining association said that there are a number of steps the U.S. can take to streamline the process and put it on par with Canada, including reducing duplication between state and federal government for approvals and setting specific deadlines.

Regardless, the Defense Production Act would be a huge step in bringing legitimacy to U.S. companies with battery-metals projects seeking to attract more capital to expand businesses and help create a self-sustaining domestic industry.

Demand for key battery metals including lithium, nickel, graphite, cobalt and manganese has surged in recent years as consumer adoption of electric vehicles including Teslas and battery-powered Ford Mustangs has accelerated.

The green-energy transition is estimated to boost global lithium consumption fivefold by the end of this decade, according to BloombergNEF. The only lithium production in the U.S. last year was from one brine operation in Nevada, according to the U.S. Geological Survey, woefully short of what’s needed to supply every Tesla made in America.

©2022 Bloomberg L.P.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Oil Field Machinery Stocks To Buy Now

    Matrix Service Company (MTRX) Matrix Service Company provides engineering, fabrication, construction, and maintenance services to energy and industrial markets. The company operates through segments such as Storage and Terminal Solutions,... Read More

  • 3 Restaurant Stocks To Buy Now

    Brinker International, Inc. (EAT) Brinker International, Inc. is a leading casual dining restaurant company, operating well-known brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company focuses... Read More

  • 3 Coal Stocks To Buy Now

    Natural Resource Partners L.P. (NRP) Natural Resource Partners L.P. is a master limited partnership that owns, manages, and leases a diversified portfolio of mineral properties in the United States. The... Read More

  • 3 Real Estate Developer Stocks To Buy Now

    IRSA Inversiones y Representaciones Sociedad Anónima (IRS) IRSA Inversiones y Representaciones Sociedad Anónima is a leading real estate company in Argentina, engaged in the acquisition, development, and management of diversified... Read More

  • 3 Gas Distribution Stocks To Buy Now

    New Jersey Resources Corporation (NJR) New Jersey Resources Corporation is an energy services holding company that provides regulated natural gas distribution services through its subsidiary, New Jersey Natural Gas. The... Read More

  • 3 Food Product Stocks To Buy Now

    The Chefs’ Warehouse, Inc. (CHEF) The Chefs’ Warehouse, Inc. is a premier distributor of specialty food products, serving high-end restaurants, hotels, and gourmet food stores across the United States and... Read More

  • 3 HVAC Stocks To Buy Now

    Featured Content Lennox International Inc. (LII) Lennox International Inc. is a global leader in energy-efficient climate control solutions, specializing in heating, ventilation, air conditioning, and refrigeration (HVACR) products. The company... Read More

  • 3 Hotel Stocks To Buy Now

    Featured Content Hyatt Hotels Corporation (H) Hyatt Hotels Corporation operates a global portfolio of luxury, full-service, and lifestyle hotels, as well as vacation properties. Known for its premium hospitality offerings,... Read More

  • 3 Tobacco Stocks To Buy Now

    Featured Content Turning Point Brands, Inc. (TPB) Turning Point Brands, Inc. is a consumer products company that manufactures and markets tobacco products and alternative smoking accessories. The company’s portfolio includes... Read More

  • 3 Life Insurance Stocks To Buy Now

    Featured Content F&G Annuities & Life, Inc. (FG) F&G Annuities & Life, Inc. specializes in annuities and life insurance products designed to meet the long-term financial planning needs of clients.... Read More

  • 3 Soft Beverage Stocks To Buy Now

    Featured Content Westrock Coffee Company (WEST) Westrock Coffee Company is a leading integrated coffee, tea, and extract service provider, offering comprehensive solutions from sourcing and roasting to packaging and distribution.... Read More

  • 3 Medical Info System Stocks To Buy Now

    Featured Content Clover Health Investments, Corp. (CLOV) Clover Health Investments, Corp. is a healthcare technology company focused on improving health outcomes for America’s seniors. The company offers Medicare Advantage plans... Read More