Public Health

Defense Production Act invoked for batteries – ^

On March 31, 2022, the president signed a determination permitting the use of Defense Production Act (DPA) Title III authorities to strengthen the U.S. industrial base for large-capacity batteries.  With this action, the president gave the Department of Defense (DoD) the authority to increase domestic mining and processing of critical materials for the large-capacity battery supply chain.

The United States depends on unreliable foreign sources for many of the strategic and critical materials necessary for the clean energy transition, such as lithium, nickel, cobalt, graphite, and manganese used in large-capacity batteries.  Demand for such materials is projected to increase exponentially as the world transitions to a clean energy economy.

The DPA Title III authorities enables DoD to undertake actions, including but not limited to, feasibility studies and modernization projects for mature mining, benefication, and value-added processing projects to increase productivity, environmental sustainability, and workforce safety.  It also allows for by-product and co-product production at existing mining, mine waste reclamation, and other industrial facilities.

This determination reiterates the administration’s commitment to sustainable development, and provides an example of how other nations can responsibly produce and process critical materials for large-capacity batteries.

The department continues to work with key stakeholders to use DPA Title III authorities to address risks and challenges across supply chains for large-capacity batteries. These authorities expand options and opportunities to accelerate and scale critical investments across key markets.

It is the policy of my Administration that ensuring a robust, resilient, sustainable, and environmentally responsible domestic industrial base to meet the requirements of the clean energy economy, such as the production of large-capacity batteries, is essential to our national security and the development and preservation of domestic critical infrastructure.

The United States depends on unreliable foreign sources for many of the strategic and critical materials necessary for the clean energy transition — such as lithium, nickel, cobalt, graphite, and manganese for large-capacity batteries.  Demand for such materials is projected to increase exponentially as the world transitions to a clean energy economy.

“To promote the national defense, the United States must secure a reliable and sustainable supply of such strategic and critical materials.  The United States shall, to the extent consistent with the promotion of the national defense, secure the supply of such materials through environmentally responsible domestic mining and processing; recycling and reuse; and recovery from unconventional and secondary sources, such as mine waste.

These actions shall be conducted, to the extent consistent with the promotion of the national defense and applicable law, with strong environmental, sustainability, safety, labor, Tribal consultation, and impacted community engagement standards, to rebuild and maintain American expertise and productive capacity in these critical sectors.

Sec. 2.  Determination.  (a)  I hereby determine, pursuant to section 303(a)(5) of the Act, that:

(1)  sustainable and responsible domestic mining, beneficiation, and value-added processing of strategic and critical materials for the production of large-capacity batteries for the automotive, e-mobility, and stationary storage sectors are essential to the national defense;

(2)  without Presidential action under section 303 of the Act, United States industry cannot reasonably be expected to provide the capability for these needed industrial resources, materials, or critical technology items in a timely manner; and

(3)  purchases, purchase commitments, or other action pursuant to section 303 of the Act are the most cost-effective, expedient, and practical alternative method for meeting the need.

(b)  Consistent with section 303(a)(1) of the Act, the Secretary of Defense shall create, maintain, protect, expand, or restore sustainable and responsible domestic production capabilities of such strategic and critical materials by supporting feasibility studies for mature mining, beneficiation, and value-added processing projects; by-product and co-product production at existing mining, mine waste reclamation, and other industrial facilities; mining, beneficiation, and value-added processing modernization to increase productivity, environmental sustainability, and workforce safety; and any other such activities authorized under section 303(a)(1) of the Act.

(c)  In the execution of projects to create, maintain, protect, expand, or restore sustainable and responsible domestic production capabilities of such strategic and critical materials consistent with section 303(a)(1) of the Act, the Secretary of Defense shall consult with the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Energy, and the heads of other executive departments and agencies (agencies) as appropriate.

(d)  Further, pursuant to section 303(a)(7)(B) of the Act, I find that action to expand the domestic production capabilities for such strategic and critical materials is necessary to avert an industrial resource or critical technology item shortfall that would severely impair the national defense capability.  Therefore, I waive the requirements of section 303(a)(1)–(a)(6) of the Act for the purpose of expanding the sustainable and responsible domestic mining, beneficiation, and value-added processing of strategic and critical materials necessary for the production of large-capacity batteries for the automotive, e-mobility, and stationary storage sectors.

Tags: Large Capacity Batteries, Defense Production Act, Biden Administration, Clean Energy, Renewable Energy

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