A Chinese-dominated mining company has procured millions of dollars in American subsidies to extract lithium in the United States – but, given a dearth of U.S. processing capacity, the mineral is likely to be sent to China with no guarantee that the end product would return as batteries to power President Biden’s envisioned green economy.
Critics say the scenario would increase U.S. energy dependence on a hostile power – one accused of using forced labor in the manufacture of both lithium batteries and solar panels – and undercuts the Biden administration’s emphasis on domestic sourcing of green energy.
“We need the finished product here,” said Glenn Miller, a retired professor of environmental science at the University of Nevada, Reno, who has spent decades in mining chemistry. “I would hope there is an advantage to taking that lithium and shipping it 200 miles south to process it [rather] than shipping it around the world. We should all be troubled by China’s control of [minerals]. Why can’t we do this?”
While the United States has ample supplies of lithium, it currently falls short on the capacity to process it into a usable form, meaning that the $7 billion in taxpayer money invested in the nation’s battery supply chain will have to include a foreign component. That is almost certain to include China, which produces 79% of the world’s lithium-ion batteries.
Lithium has taken the spotlight in Biden’s energy plan, since it is a key element needed to produce batteries for electric vehicles and solar panel storage. The administration acknowledges the lithium processing challenge – tacitly – in a June 2021 report produced by the U.S. Department of Energy. “The nation would benefit greatly from development and growth of cost-competitive domestic materials processing for lithium-battery materials,” the report reads.
Department of Energy spokesman David Mayorga did not respond to a list of questions on domestic lithium.
The White House in March issued an order invoking the Defense Production Act, a 1950’s-era law meant to prioritize production of materials in the name of national security. The action allows the federal government to direct taxpayer funds to private companies to extract more lithium in the U.S. – including foreign-based interests.
Prominent in the initiative is Canadian-based Lithium Americas, a publicly traded group whose largest shareholder is Chinese-owned lithium mining giant Ganfeng Lithium, which is currently under investigation in China for alleged insider trading.
Lithium Americas is seeking to mine lithium from Thacker Pass, an 18,000-acre wilderness area on the Nevada-Oregon border. If the mining is approved, Thacker Pass would join a mine at Silver Peak outside of Tonopah, Nevada, as one of the only active lithium mines in the U.S. The company projects it will yield 80,000 tons of lithium a year, which would make it one of the largest lithium mines in the world, producing a quarter of the world’s demand.
Lithium Americas’ local company, Lithium Nevada, has been approved to receive Nevada tax abatements worth $8.5 million. And the parent company has applied for a grant through the Department of Energy, including money that Biden made available via the Defense Production Act.
But there is no promise from recipients of tax breaks and grants that the end product will benefit the U.S. In a statement to RCI, Lithium Americas’ CEO Jonathan Evans downplayed the company’s China connection and skirted the question of whether the mined lithium will go to U.S. partners for processing.
“While Lithium Americas is partnered with Ganfeng Lithium at Cauchari Olaroz in Argentina, [Lithium Americas] owns 100% of Thacker Pass and has 100% of the offtake uncommitted,” Evans said in the statement. “We remain devoted to producing a domestic supply of essential lithium from our Thacker Pass project focused on selling to U.S. focused customers to strengthen the domestic battery supply chain.”
Daniel Simmons, a former assistant secretary who focused on renewables at the Energy Department during the Trump administration, said: “Every mining company that I have talked to wants to see the lithium they produce processed and turned into batteries in the United States. But if there aren’t enough facilities here in the United States, the Chinese will likely process it and turn it into batteries.”
The U.S.’ share of worldwide production has dropped from 27% in 1996 to 1% in 2020 while other countries have increased their mining of lithium since the mid-1990s, when the mineral was used primarily for construction materials, glass, and strengthening aluminum and magnesium.
The growth in worldwide lithium production coincides with the increase in production of electric vehicles. In 2015, less than 30% of lithium demand was for batteries, according to a report from McKinsey & Company, a consultancy. By 2030, McKinsey projects, 95% of produced lithium will be for batteries.
The U.S. last year produced 2,500 tons of lithium – a far cry from the 80,000 tons anticipated at Thacker Pass – and it exported 1,900 of those tons.
The destination of lithium exported last year by the U.S. has not yet been compiled and 2020’s numbers are skewed by the COVID-19 pandemic. In 2019 – predating the Biden renewable goals – Germany and Japan were the largest recipients of U.S.-mined lithium. Little U.S. lithium went to China in 2020, according to data from the U.S. Geological Survey.
Despite the high strategic priority placed on lithium by the Biden administration, Beijing’s continued push for mineral dominance in the world means that “China will continue to dominate lithium chemical production for the foreseeable future,” according to a projection from Benchmark Mineral Intelligence, a London-based price-reporting agency.
Reliance on Chinese processing of lithium would again put the Biden administration in the politically uncomfortable position of overlooking humanitarian abuses and trade violations by China.
Forced labor has been found in so-called green industries in the Chinese region of Xinjiang, a region home to solar panel manufacturing and some of the country’s major lithium processing plants.
Last week, seven Democratic lawmakers sent a letter to Homeland Security Secretary Alejandro Mayorkas asking why three large Chinese solar firms were left off a list of companies whose products are banned over violations of forced labor rules. Under the Uighur Forced Labor Prevention Act that took effect on June 21, all goods manufactured in Xinjiang are presumed to have been made with forced labor and should be blocked from entry into the United States.
In another recent instance irritating environmental and human rights advocates who are usually in Biden’s camp, the President last week fist-bumped Saudi Crown Prince Mohammed bin Salman, tied to the 2018 murder of journalist Jamal Khashoggi, while on a visit to coax greater oil production from the kingdom and stem soaring U.S. gas prices at the pump. At home, the climate change-focused administration has imposed or proposed policies intended to hinder fossil fuel producers.
U.S. reliance on foreign interests for usable lithium, as well as for solar panels, echoes the situation in Europe, where several countries looked to Russian energy sources over the years before Vladimir Putin’s invasion of Ukraine. That led Germany and Italy to recently announce plans to revamp coal use to supply their energy needs.
There are other ramifications to Biden’s willingness to cut against the traditional Democratic Party grain in energy policy. Mining and solar plant development are disrupting federal lands claimed by Native American tribes as culturally significant. And the Reno-Sparks Indian Colony and the Oregon-based Burns Paiute Tribe have sued the U.S. Bureau of Land Management to halt the Thacker Pass project. They claim the area is a religious and cultural outpost. Lithium Americas had been in talks with the land bureau to build a mine on the land since at least 2017, according to a RealClearInvestigations review of court filings.
Native American communities lean to Democrats and in 2020 gave Biden an estimated 60% percent of their vote, but that support is now counterbalanced by the National Mining Association, a longtime coal-mining advocacy group, which has backed off its favoritism of Republican candidates.
The mining association’s political action committee has for the past decade donated to Republican candidates at a 9-1 pace over Democrats, but this year the ratio dropped to 3-1 as mining companies have warmed to the administration’s move away from coal and into lithium.
Rich Nolan, president of the mining association, did not respond to an interview request.
Gary McKinney, a spokesman for the People of Red Mountain, a Native American group challenging the Thacker Pass mine, sees a familiar ulterior motive at play. “You can’t fix the climate crisis through dirty mining,” he said. “This is all about money, not the environment.”
Image via Mining.com. Article cross-posted from Real Clear Investigations.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
