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Volume XIII, Number 32

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Biden Uses Defense Production Act to Boost Domestic Mining in Support of Large-Capacity Battery Production

On March 31, President Biden designated the production and processing of materials used in large-capacity batteries as essential to the national defense.

This presidential designation opens up federal funding to support domestic mining and processing of the minerals used in these batteries, such as lithium, nickel, cobalt, graphite, and manganese, which are currently sourced from abroad. Large-capacity batteries are used in electric vehicles and for energy storage. The order is notable because President Biden is using his authority under the Defense Production Act (DPA) to support the transition to clean energy.

Last year, President Biden set targets for the United States to halve 2005 baseline greenhouse gas emissions by 2030 and become a net-zero emission economy by 2050. The Biden Administration’s long-term plan to achieve those targets recognized the importance of battery technology to the growth of both zero-emission vehicles and energy storage.

In his order invoking the DPA, President Biden reiterated that large-capacity batteries are “requirements of the clean energy economy.” Noting the US’s current dependence on “unreliable foreign sources” for the materials used to make batteries, the order invokes DPA Section 303, which authorizes the president to undertake certain activities to “create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense.”

The order identifies three specific activities to receive support:

  • Feasibility studies for mining, beneficiation, and processing;

  • By-product and co-product production at existing facilities; and

  • Mining, beneficiation, and processing modernization.

The immediate impact to domestic businesses engaged in mining or processing materials used in batteries is not yet clear. However, the order is explicit that it does not waive or supersede compliance with permitting requirements or environmental health and safety laws.

Projects authorized under DPA Section 303 are eligible to receive funding from the Defense Production Act Fund, although the order does not specify any source or amount of funds to be used.

 

© 2023 ArentFox Schiff LLPNational Law Review, Volume XII, Number 91
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About this Author

Matthew Griffin Civil Rights Attorney
Associate

Matthew has experience in a variety of practice areas. He has drafted memoranda on a number of issues, including civil rights, qualified immunity, appellate jurisdiction, civil procedure, and evidence. He has also assisted in entity formation and dissolution, blue sky law filings, trademark searches, and contract drafting.

Prior to law school, Matthew worked with artistic and educational organizations of all sizes to help them achieve their fundraising and development goals. He understands how to use data to tell a story, finding creative ways to analyze and communicate complex...

312.258.5647
Daniel Deeb Civil Litigation Attorney Schiff Hardin
Partner

Dan has been practicing environmental law for more than 20 years. His practice includes all facets of environmental law permitting, compliance and litigation, including federal and state cases involving the Clean Water Act, Clean Air Act, RCRA, CERCLA, FIFRA, TSCA, brownfields redevelopment, and state analogs. Before practicing law, Dan worked as a senior chemist for an environmental consulting firm and clerked for the U.S. EPA’s Office of Enforcement and Compliance Assurance. He is a frequent lecturer and has written about environmental legal issues for a variety of publications. His...

312-258-5532
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