Miners push for U.S. Congress to vote on electric vehicle supply chain bills

Nevada Copper

23/09/2019 16:12

By Ernest Scheyder
    WASHINGTON, Sept 23 (Reuters) - Mining executives eager to
speed U.S. production of lithium and other metals for the
burgeoning electric vehicle industry are frustrated that the
U.S. Congress has yet to pass legislation designed to streamline
mine permitting and fund geological studies, among other steps.
    Earlier this year, Washington's trade war with Beijing
threatened to curb Chinese shipments to the United States of
rare earth minerals used in defense equipment. China is also the
world's largest electric vehicle battery producer, processor of
lithium and consumer of copper.
    "We don't have great clarity on what the legislative
timelines are," said Keith Phillips, chief executive of Piedmont
Lithium Ltd  PLL.AX , which is developing a lithium mine in
North Carolina. "This pending legislation would be a big
positive" to help secure investment.
    The bills would, if passed and signed into law by President
Donald Trump, streamline regulation; fund research into rare
earths extraction from coal; allow formation of a rare earths
co-operative, bypassing antitrust laws; push the Pentagon to
seek new minerals supplies; and speed approval of mine permits.
    The delay leaves the United States reliant on others for
many specialized minerals as the global economy becomes
electrified after more than a century of reliance on fossil
fuels. The drive has gained visibility as millions of young
people joined worldwide climate protests and leaders gathered at
the United Nations to revitalize efforts to curb carbon
emissions.  urn:newsml:reuters.com:*:nL2N26D073
    Senator Lisa Murkowski, chair of the U.S. Senate Energy and
Natural Resources Committee, expressed confidence her
legislation will eventually pass as it awaits a full Senate
vote. urn:newsml:reuters.com:*:nL1N22E0O1
    Senators Joe Manchin and Marco Rubio have introduced similar
legislation, as have U.S. House of Representatives
members. urn:newsml:reuters.com:*:nL2N22Q0ID 
    It is not unusual for legislation to stall in Congress, and
few major bills have passed this year. But the snail's pace has
irked business leaders used to the faster pace of corporate
America.
    "I know there is frustration when do you don't see
legislation moving, but that doesn't meet we have not been
working steadily and aggressively," said Murkowski, an Alaska
Republican who warned at a Senate hearing last week that the
United States is losing the race to extract and refine minerals
used for electric vehicles. urn:newsml:reuters.com:*:nL2N2680R8
    To be sure, Washington has taken steps to help industry: In
July, Trump signed an executive order directing the Pentagon to
find sources of rare earths outside of
China. urn:newsml:reuters.com:*:nL2N23B1RE urn:newsml:reuters.com:*:nL2N24N1LH But that order could be reversed
by Trump's successor.
    Manchin, a West Virginia Democrat, said legislation is
"inevitable" to bolster domestic production. "We can't sit here
and think five to 10 years down the road that we'll be hunkydory
with China or anyone else," he said.
    Meanwhile, the electric vehicle industry continues to grow.
Last week, Amazon.com Inc  AMZN.O  said it would buy 100,000
electric delivery vans, the largest electric vehicle order in
history. urn:newsml:reuters.com:*:nL2N26A0WH
    Rivian Automotive LLC will build the vans at its Normal,
Illinois, facility, which will import the lithium and other key
minerals used in the batteries. urn:newsml:reuters.com:*:nL2N26A0PB Miners said that
should be another wake-up call for Washington. 
    "I deeply appreciate Murkowski and Manchin's legislation,
said James Calaway, chairman of ioneer Ltd  INR.AX , which is
developing a lithium and boron project in Nevada. "But the
industrial needs that are out there to spur this industry and
create an equitable playing field will require substantially
larger resources than currently under consideration." 

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Lithium projects underway in the United States    https://amers1.apps.cp.thomsonreuters.com/apps/newsservices/mediaProxy?apiKey=28e16fe5-d158-4537-9aac-e3e31f3318df&url=https%3A%2F%2Fgraphics.reuters.com%2FUSA-LITHIUM%2F010091C61X6%2FUSA-Lithium.jpg
Global rare earth production    https://amers1.apps.cp.thomsonreuters.com/apps/newsservices/mediaProxy?apiKey=28e16fe5-d158-4537-9aac-e3e31f3318df&url=https%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Feditorcharts%2FUSA-TRADE-CHINA-RAREEARTH%2F0H001PGB36HY%2Findex.html
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 (Reporting by Ernest Scheyder; Editing by David Gregorio)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))