Biden Administration Grants First Permit for Lithium Mine Development... "Reducing Dependence on China"

Image related to lithium mines [Image source=Reuters Yonhap News]

The Joe Biden administration in the United States has, for the first time, approved the development of a domestic lithium mine to reduce dependence on China in the critical minerals supply chain.

On the 24th (local time), the U.S. Department of the Interior issued federal approval for a lithium mining project in Nevada pursued by the Australian lithium mining company Ioneer. Ioneer aims to begin mine construction in 2025 and start mass production by 2028. Lithium is identified as a key mineral for electric vehicle batteries.

This approval is part of the Biden administration's efforts to break free from dependence on China for critical minerals. As the world moves toward a green energy transition, China’s influence is growing as the world's largest mineral producer. Laura Daniel-Davis, Acting Secretary of the Interior, stated that this is "essential to advancing the clean energy transition and powering the economy of the future."

Ioneer expects to supply lithium from the mine for over 20 years, enough for 370,000 electric vehicles annually. The lithium is expected to be supplied to Ford Motor Company and Toyota Motor Corporation. Previously, the U.S. Department of Energy approved a loan of up to $700 million (approximately 960 billion KRW) to Ioneer last year.

Currently, the only lithium mine in the U.S. is the one being constructed in Nevada by Lithium Americas, which was approved at the end of the previous Donald Trump administration.