LTHM - Biden invokes Defense Production Act to boost EV battery production

Lithium producers extend gains after the Biden administration officially said Thursday it will use the Defense Production Act to boost domestic production of critical materials for batteries needed to power electric vehicles and the transition to renewable energy. The decision adds lithium, nickel, cobalt, graphite and manganese to a list of covered items, which could help mining companies access $750M under the Act's Title III fund. Among potentially relevant tickers: NYSE:SLI +6.6%, NYSE:LAC +4.4%, NYSE:MP +3.3%, ALB +1.6%, LTHM +1.4%, PLL -0.2%. However, the Defense Production Act does nothing to streamline the permitting process that sees 7-10 years to get a mine up and running in the U.S., compared to 2-3 years in Canada, according to the U.S. National Mining Association. The White House Thursday also unveiled plans to release 1M bbl/day of strategic crude oil reserves over the next six months.

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Biden invokes Defense Production Act to boost EV battery production