While electric vehicle (EV) batteries depend on several critical minerals, including lithium, cobalt, and nickel, EVs are a crucial driver for the domestic development of these resources. The U.S. government has declared all three of these metals critical to American economic and national security. However, the United States produces almost none of these crucial inputs, relying on foreign countries, including several competitors, for this vital supply. Here is what you need to know about critical minerals and EVs in the United States.
Boosting Domestic Production & U.S. Energy Independence
In recent years, the U.S. Government has attempted to increase domestic critical mineral production, recognizing that U.S. dependence on other countries for these vital inputs poses too great a risk. In 2020, President Trump issued an Executive Order declaring a national emergency on critical mineral supply and calling for federal investment to boost domestic production. Since then, the Department of Energy (DOE) and other agencies have issued grants to the private sector and taken other actions to bolster domestic mining and refining capacity. The President’s recent Executive Order on unleashing American energy reaffirms this goal.
The EV Industry’s Demand for Critical Minerals
This push will only succeed if the U.S. EV industry thrives. Further investment in domestic critical mineral production depends on continued robust demand for such minerals. As domestic capacity develops, U.S. producers will struggle to remain economically viable amid volatile global commodity prices without steady and predictable demand here at home to rely on.
Although critical minerals are also important inputs to various commercial and military products, EV manufacturers are driving the biggest investments in domestic production. For example, General Motors recently entered into a $625 million joint venture with Lithium Americas, giving it exclusive rights to future production at a lithium mine being built in Thacker Pass, Nevada. Ford has also signed an agreement to buy lithium hydroxide from a new facility in Imperial County, California, known as Project ATLiS, which recently received a $1.36 billion conditional loan from the U.S. Department of Energy. Tesla supplier Talon Metals has begun an exploratory project for nickel in the Upper Peninsula of Michigan, driven by the EV maker’s demand.
U.S. Critical Mineral Job Growth
EV battery manufacturing investments will create a more secure supply of critical minerals and thousands of American jobs. U.S. critical mineral production employment is forecast to double by 2030. As U.S. Secretary of Energy nominee Chris Wright recently stated, “Secure and reliable supply chains for critical materials, including critical minerals, are key to a prosperous and internationally competitive economy.”
Conclusion
The fates of onshoring critical mineral supply chains and the U.S. EV industry are clearly intertwined. Just like critical minerals, EVs — including those powered by Blink’s chargers manufactured in Bowie, Maryland — will play a vital role in America's energy future.