Resources in the US are small compared with countries such as Canada… and the US lacks the smelters to refine the materials from ore and existing mine tailings. The US relies entirely on imports for 17 mineral commodities, 14 of which are identified as critical minerals, according to the US Geological Survey. The Biden administration has invoked the act in response to escalating energy prices, Russia’s invasion of Ukraine, and its goal of achieving a clean power grid by 2035. Specifically, the DPA will be authorized to support the production and processing of minerals and materials used for large capacity batteries–such as lithium, nickel, cobalt, graphite, and manganese-and the Department of Defense will implement this authority using strong environmental, labor, community, and tribal consultation standards. The President will issue a directive, authorizing the use of the Defense Production Act to secure American production of critical materials to bolster our clean energy economy by reducing our reliance on China and other countries for the minerals and materials that will power our clean energy future. Civil transportation and energy are included under the “national defense” umbrella.Īccording to a White House fact sheet released today: In other words, companies are required to prioritize federal contracts for goods and materials. Title III of the DPA provides various financial measures, such as loans, loan guarantees, purchases, and purchase commitments, to improve, expand, and maintain domestic production capabilities needed to support national defense and homeland security procurement requirements. The Defense Production Act is the primary source of presidential authorities to expedite and expand the supply of materials and services from the US industrial base needed to promote the national defense.įEMA also explains Title III, “Expansion of Productive Capacity and Supply”: The Defense Production Act for critical minerals President Joe Biden will today authorize the use of Title III of the Korean War-era Defense Production Act (DPA) to rapidly step up US production of minerals for electric vehicle and storage batteries.
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