Focus: U.S. faces tough choices in 2022 on mines for electric-vehicle metals

Polymet Mining

22/12/2021 06:00

By Ernest Scheyder
    Dec 22 (Reuters) - The United States has enough reserves of
lithium, copper and other metals to build millions of its own
electric vehicles (EVs), but rising opposition to new mines may
force the country to rely on imports and delay efforts to
electrify the nation's automobiles.
    The tension underscores the dilemma facing the United States
going into 2022, a year in which U.S. policymakers hope to see
groundbreakings on a raft of EV manufacturing facilities from
Ford Motor Co https://www.reuters.com/business/autos-transportation/ford-aims-be-worlds-2-electric-vehicle-maker-within-two-years-coo-2021-12-03
  F.N , General Motors Co https://www.reuters.com/business/autos-transportation/gm-eyes-3-billion-investment-michigan-ev-plants-source-2021-12-10
  GM.N  and others. 
    President Joe Biden signaled https://www.reuters.com/technology/us-must-work-with-allies-secure-electric-vehicle-metals-white-house-2021-06-08
 earlier this year he prefers to rely on allies for EV metals,
part of a strategy designed to placate environmentalists. That
means U.S. automakers will find themselves competing with
international rivals for supply amid  the global rush to
electrification. 
    U.S. metals imports, though, could boost greenhouse gas
emissions by increasing shipping from overseas mines to
processing facilities, most of which are in Asia, thus
abrogating part of the rationale behind building more EVs. 
    A Reuters analysis found that proposed U.S. mining projects
could produce enough copper to build more than 6 million EVs,
enough lithium to build more than 2 million EVs and enough
nickel to build more than 60,000 EVs. 
    The estimates are based on the volume of minerals used to
make a Tesla Inc  TSLA.O  Model 3, the world's most popular EV,
according to a study by Benchmark Mineral Intelligence. Other
types of EV use different amounts, depending on design.
    "If we don't start getting some mining projects under
construction this coming year, then we will not have the raw
materials domestically to support EV manufacturing," said James
Calaway, executive chairman of ioneer Ltd  INR.AX . 
    Biden in August issued an executive order https://www.reuters.com/business/autos-transportation/biden-set-target-50-evs-by-2030-industry-backs-goal-2021-08-05
 aimed at making half of all new vehicles sold in 2030 electric.
    Washington so far has offered confusing guidance to its
mining industry. For example, the U.S. Fish and Wildlife Service
is poised to label a rare flower https://www.reuters.com/article/usa-mining-ioneer-idCNL1N2QX202
 found on a handful of acres at ioneer's Nevada lithium mine
site as endangered, a step that could impede permitting. At the
same time, the U.S. Department of Energy is deciding whether to
lend the company https://www.reuters.com/markets/commodities/australias-ioneer-says-us-govt-loan-application-moves-forward-2021-12-19
 more than $300 million to build the mine. 
    
    OPPOSITION 
    Other proposed mines face opposition from indigenous groups,
ranchers or environmentalists, underscoring the broader tension
https://www.reuters.com/business/energy/go-electric-america-needs-more-mines-can-it-build-them-2021-03-01
 in the United States as resistance to living near a mine
clashes with the potential of EVs to mitigate climate change.
    In early 2022, federal judges are set to rule in two
separate cases as to whether mine approvals granted by former
President Donald Trump to Lithium Americas Corp https://www.reuters.com/article/usa-mining-lithium-americas-idCNL1N2Q51XA
  LAC.TO  and Rio Tinto Plc https://www.reuters.com/legal/litigation/us-appeals-court-hints-support-rios-resolution-copper-mine-2021-10-22
  RIO.L  should be reversed. 
    In Minnesota, state regulators https://www.reuters.com/article/us-usa-mining-polymet-mining/minnesota-court-orders-fresh-review-of-polymet-mine-permits-idUSKBN2CF2KK
 are weighing whether permits issued to PolyMet Mining Corp
 POM.TO , which is controlled by mining giant Glencore Plc https://www.reuters.com/article/us-glencore-risk-focus/glencores-risk-appetite-dwindles-fueling-focus-on-safer-regions-idUSKCN1VQ0FQ
  GLEN.L , should be revoked or reissued. PolyMet's mine would
become a major nickel producer just as the only U.S. nickel mine
is set to close by 2025.
    In North Carolina, Piedmont Lithium Inc's  PLL.O  failure to
keep local landowners https://www.reuters.com/business/energy/push-supply-tesla-piedmont-lithium-irks-north-carolina-neighbors-2021-07-20
 abreast of its development plans may cost the company necessary
local zoning approvals.
    Biden himself took steps in October to block https://www.reuters.com/business/environment/blow-twin-metals-us-proposes-mining-ban-boundary-waters-2021-10-20
 Antofagasta Plc's  ANTO.L  Twin Metals copper and nickel mine
project in Minnesota for 20 years. The proposed underground mine
would have become a major U.S. supplier of copper for EVs, which
use twice as much of the red metal as vehicles with internal
combustion engines.
    Despite that step, the White House has been working to
highlight https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/13/fact-sheet-the-biden-harris-electric-vehicle-charging-action-plan
 its support for certain EV mining projects, including Lithium
Americas' proposed lithium mine - despite Native American
opposition - and a California geothermal lithium project funded
in part by GM https://www.reuters.com/business/autos-transportation/gm-shakes-up-lithium-industry-with-california-geothermal-project-2021-07-02.
 
    The administration also touted a Tesla lithium supply deal
with Piedmont, even though that arrangement was put permanently
on hold https://www.reuters.com/business/energy/piedmont-says-has-delayed-timeline-supply-lithium-tesla-2021-08-02
 earlier this year.
    Many of the mining projects have strong support from labor
unions https://www.reuters.com/article/usa-biden-mining-idCNL2N2NC32W,
 a constituency that the president has worked to cultivate and
one sometimes at odds with environmental groups hoping to block
new mines.    
    Biden's EV goal "means good-paying union jobs for working
people in responsible mining operations that will both supply
battery minerals and protect the environment," said Tom Conway,
head of the United Steelworkers, a union that represents some
U.S. miners.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
INSIGHT-To go electric, America needs more mines. Can it build
them?     urn:newsml:reuters.com:*:nL3N2KZ50D
INSIGHT-Arizona mining fight pits economy, EVs against
conservation, culture     urn:newsml:reuters.com:*:nL1N2LO28S
EXCLUSIVE-Biden looks abroad for electric vehicle metals, in
blow to U.S. miners      urn:newsml:reuters.com:*:nL2N2NC32W
U.S. to work with allies to secure electric vehicle metals   
 urn:newsml:reuters.com:*:nL2N2NQ15Z
FOCUS-In push to supply Tesla, Piedmont Lithium irks North
Carolina neighbors     urn:newsml:reuters.com:*:nL1N2OW2MT
Piedmont Lithium delays timeline to supply Tesla     urn:newsml:reuters.com:*:nL1N2P91B0
U.S. House committee moves to block Rio Tinto's Resolution mine 
    urn:newsml:reuters.com:*:nL1N2QC28T
ANALYSIS-Miners face talent crunch as electric vehicles charge
up metals demand     urn:newsml:reuters.com:*:nL1N2SO22N
EXPLAINER -How industry is depending on carbon capture
technology for climate goals     urn:newsml:reuters.com:*:nL1N2RI2Q9
Antofagasta to appeal U.S. plan to block Twin Metals copper mine
    urn:newsml:reuters.com:*:nL1N2RN21C
U.S. appeals court hints at support for Rio's Resolution copper
mine     urn:newsml:reuters.com:*:nL1N2RI2KF
U.S. Senator Manchin promises to block mining royalty plan   
 urn:newsml:reuters.com:*:nL1N2RA2X5
Automakers funding new tech aimed at making greener lithium for
EVs     urn:newsml:reuters.com:*:nL1N2R214K
U.S. advances plan to protect Nevada flower near lithium project
     urn:newsml:reuters.com:*:nL1N2QX202
U.S. miners decry mineral royalty plan floated in Congress   
 urn:newsml:reuters.com:*:nL1N2QG2JQ
Sibanye Stillwater buys half of ioneer's Nevada lithium project
in $490 million deal     urn:newsml:reuters.com:*:nL1N2QH34A
Native Americans lose bid to halt digging at Nevada lithium mine
site     urn:newsml:reuters.com:*:nL1N2Q51XA
GM shakes up lithium industry with California geothermal project
    urn:newsml:reuters.com:*:nL2N2OD3AW
U.S. EPA weighs Taseko copper mining process akin to fracking   
 urn:newsml:reuters.com:*:nL2N2NR255
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 (Reporting by Ernest Scheyder in Houston
Editing by Matthew Lewis)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))