Exclusive: the United States targets China with the new thrust of an electric vehicle

(Reuters) – According to sources close to the case, US government officials will meet with carmakers and lithium miners in early May as part of the first effort of its kind to launch a national drug chain strategy. supply of electric vehicles.

While Volkswagen AG, Tesla Inc. and other auto-based battery manufacturers are developing in the United States and investing billions of dollars in new technology, they depend on mineral imports without having to much to develop their mines and processing facilities.

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China already dominates the supply chain of electric vehicles. It produces nearly two-thirds of the world's lithium-ion batteries – compared with 5% in the US – and controls most of the world's lithium-based processing facilities, according to data from Benchmark Minerals Intelligence, which tracks the prices of lithium-ion batteries worldwide. lithium and other commodities. is organizing the event in Washington, DC.

US lithium imports have almost doubled since 2014, in part because of increasing demand from Tesla, SK Innovation Co and other battery manufacturing companies in the country, according to the US Geological Survey.

"We need to find ways to more effectively develop Canada's critical mineral reserves, because these resources are vital to our national security and our economy," said Sen. John Hoeven of North Dakota, a member of the Senate Committee on Climate Change. Energy and natural resources. a statement to Reuters about the meeting.

Hoeven and Senator Lisa Murkowski, Chair of the Senate Energy Committee, were invited to attend the meeting. Officials from the US State Department, the Department of Energy, the Department of the Interior and the US Geological Survey have planned to be present, according to two sources.

As part of this effort, Mr. Murkowski is expected to adopt stand-alone legislation to streamline the licensing process for lithium and other mines, support national and federal studies on national supplies of essential minerals, and encourage recycling of minerals. minerals, among other things, according to a well-known source. with the material.

Some of these efforts were part of broader energy legislations in previous congresses that failed, and Murkowski hopes similar legislation will draw more attention to the subject, according to the source.

Five companies, including Lithium Americas Corp., are developing lithium projects in the United States that are planning to use new technologies to extract metal from clays, bromine and even oilfield waste, which are unusual processes elsewhere and are considered by many. some analysts as decisive. But not all of them got funding.

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If all five are commissioned by 2022 as planned, the country will produce at least 77,900 tonnes of lithium carbonate equivalent each year, making it one of the largest lithium producers in the world. Lithium development projects have always faced many obstacles, so their number of production is far from guaranteed.

"The creation of a domestic electric vehicle supply chain is the ideal plan to make America great again," said Jesse Edmondson, president and CEO of the American company Critical Minerals, a start-up company buying rights to lithium mineral resources in the southeastern United States.

Representatives of Tesla, Ford Motor Co and General Motors Co plan to attend the Washington meeting and discuss with the federal authorities possible policy changes likely to encourage the development of a National supply chain for the extraction, processing and supply of lithium, nickel, cobalt and graphite for battery manufacturers. and automakers, according to sources.

Tesla and GM did not respond to requests for comments.

A spokesman for Ford said the company was talking regularly with stakeholders on various topics related to the supply chain.

Albemarle Corp. and Livent Corp., two US lithium-based companies in South America, also plan to participate, as do the leaders of the developing lithium mine grip in the United States, sources said.

"We look forward to participating in a forum bringing together policy makers and industry players who will ensure that the United States remains a leader in the development of the electric vehicle industry," he said. said Paul Graves, CEO of Livent, who said he was considering expansion opportunities.

Albemarle, which operates the only existing lithium mine in the United States, declined to comment.

The one – day meeting will be divided into morning workshops focused on funding and setting obstacles, with one – on – one meetings in the afternoon between regulators and industry leaders. according to the sources.

"We are trying to make sure that decision-makers understand this complex situation," said James Calaway, president of the ower company, which is developing a lithium project in Nevada, which also contains a high concentration of boron, used in a plethora of consumers. goods.

In Arkansas, Standard Lithium Ltd is developing a pilot project to extract lithium from bromine waste from a chemical facility at Lanxess AG.

"We have the opportunity to take a huge step forward in lithium production, and we want to support that," Asa Hutchinson, Governor of Arkansas, told Reuters.

Hutchinson and other US officials want lithium projects in the US to remain self-sustaining without government financial assistance, a potential hurdle since financiers often seek even tacit support from the government before invest in unproven new technologies.

"If the United States woke up, there would be a real opportunity in the supply chain for electric vehicles," said Jonathan Evans, president of Lithium Americas, which is currently developing a lithium project in Nevada, which should open by 2022.