WASHINGTON ( Associated Press) – Faced with higher oil prices following Russia’s invasion of Ukraine, President Joe Biden is looking to appeal to the Defense Production Act this week to increase the extraction of critical minerals for the batteries used in electric vehicles.
This is according to a person familiar with the White House plans who insisted on anonymity to discuss the likely policy move.
Greater federal support for alternatives to fossil fuels will reduce the leverage of Russian President Vladimir Putin and others on US national and economic security issues, although it reflects a long-term game rather than an immediate response to the economic damage caused by the war .
Biden’s likely order to enforce the Defense Production Act will provide a significant financial incentive to develop a household supply chain for electric vehicles and enable the shift away from petrol-powered cars.
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Putin’s attack on Ukraine began more than a month ago, fueling global energy markets for petroleum and natural gas in ways that are likely to hamper global growth. U.S. crude traded above $ 107 a barrel on Wednesday morning, up from nearly $ 60 a year ago, as inflation emerged as a continuing threat.
The Democratic president is considering calling for Title III of the 1950 Defense Production Act, which will provide the government with economic powers to address industrial shortages. Mining companies can legally gain access to money for the production of minerals, including lithium, nickel, graphite, cobalt and manganese.
The government will not issue loans or purchase minerals directly. Rather, the funding will cover feasibility studies, production at current operations and modernization of safety standards and production.