critical minerals

Inside your cell phone, your car, even your leaf blower – there’s a collection of small, precious minerals making each one work.  Ernest Scheyder is a Reuters reporter covering the clean energy transition and author of the new book, “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives.” Deidre Woollard caught up with Scheyder for a conversation about: Tradeoffs in mining, and why the U.S. is falling behind in the race for precious minerals. Tensions of the clean energy transition. The “wacky journey” of a junior mining company.  Companies mentioned: TSLA, RIO, LAC, LAAC, CVX, F, GM Host: Deidre Woollard Guest: Ernest Scheyder Producer: Ricky Mulvey, Mary Long Learn more about your ad choices. Visit megaphone.fm/adchoices

In 2021, the Biden administration put out a report about gaps in the supply chain for electric vehicles. It estimated global demand for lithium and graphite would grow by more than 4,000% by 2040 if the world were to achieve the climate goals laid out in the Paris accords. These materials, along with copper, nickel and others, are critical to green technologies. And there is a global fight over their supply, one that Reuters correspondent Ernest Scheyder documents in his new book, “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives.” He told Marketplace’s Lily Jamali about why lithium, in particular, is in such high demand and the challenges of bringing it to market.

The battery manufacturing announcements have been coming one after another—a VW cathode facility in Canada; a Tesla factory in Mexico; a Ford battery plant in Michigan. These companies hope to take advantage of the Inflation Reduction Act’s lucrative EV tax credits: Up to $3,750 for strategic minerals mined in the U.S. or its many free trade partner countries Up to $3,750 for battery components produced only in the U.S., Mexico, or Canada. But there’s a catch. A whole bunch of intermediate battery products don’t fit neatly into either bucket. For example, lithium gets processed into precursor cathode active material before it becomes cathode active material, the powder that actually makes it onto the factory floor of a battery manufacturer. Battery electrolytes go through multiple processing steps, too. Until last week, suppliers of these products were left wondering: Where should we manufacture to qualify? And for which credit? Congress had left these details up to the Treasury Department, and on Friday regulators released guidance for these intermediate products, or “constituent materials.” The new rules pleased some and angered others. So what do the changes mean for EV supply chains?  In this episode, Shayle talks to Sam Jaffe, our resident EV-supply-chain whisperer. He’s the vice president of Battery Storage Solutions at E Source. He’s come on the show before to talk about the holy grail of batteries and the basics of the IRA’s EV tax credits.  This time, Sam explains the new Treasury guidance.They cover topics like: Incentivizing domestic manufacturing while also giving auto companies the flexibility to qualify for credits Why Joe Manchin and European countries are upset about the new rules Japan’s last-minute free trade agreement before the rules came out How hard it will be for EV manufacturers to get qualifying constituent materials anytime soon, especially as they launch new mass market models What we still don’t know about how the Treasury will implement the IRA, including which countries or companies will qualify as “foreign entities of concern” Recommended Resources: U.S. Treasury: Anticipated Direction of Forthcoming Proposed Guidance on Critical Mineral and Battery Component Value Calculations for the New Clean Vehicle Credit The New York Times: New Rules Will Make Many Electric Cars Ineligible for Tax Credits Politico: Bitter friends: Inside the summit aiming to heal EU-US trade rift Catalyst is a co-production of Post Script Media and Canary Media. Support for Catalyst comes from Climate Positive, a podcast by HASI, that features candid conversations with the leaders, innovators, and changemakers who are at the forefront of the transition to a sustainable economy. Listen and subscribe wherever you get your podcasts. Catalyst is supported by Scale Microgrids, the distributed energy company dedicated to transforming the way modern energy infrastructure is designed, constructed, and financed. Distributed generation can be complex. Scale makes it easy. Learn more: scalemicrogrids.com.

On the Carbon Copy podcast this week: It’s been over three months since Russia’s invasion of Ukraine sent shockwaves into global oil markets, causing supply constraints and skyrocketing prices. The conflict has complicated the flow of energy at a time when supply chains were already jumbled up because of Covid. But it’s not just oil. The war is leaving its mark on all kinds of commodities, including the global supplies of minerals and metals. Geopolitical shifts are causing big spikes in the prices of lithium and nickel, two key components of the lithium-ion batteries used in electric cars. However, this supply mess could actually be boosting a positive trend in the battery space: recycling.  Batteries are a pillar of the zero-carbon economy, but are they truly sustainable? And will technical advancements and evolving geopolitical alliances alter the battery-based economy for the better? Our guest is Julian Spector, a senior reporter with Canary Media. Check out his latest report on five exciting startups tackling battery recycling from different angles. And check out all of Canary’s Recycling Renewables special coverage. The Carbon Copy is a co-production of Post Script Media and Canary Media. Catalyst is supported by Antenna Group. For 25 years, Antenna has partnered with leading clean-economy innovators to build their brands and accelerate business growth. If you're a startup, investor, enterprise, or innovation ecosystem that's creating positive change, Antenna is ready to power your impact. Visit antennagroup.com to learn more. Solar Power International and Energy Storage International are returning in-person this year as part of RE+. Come join everyone in Anaheim for the largest, B2B clean energy event in North America. Catalyst listeners can receive 15% off a full conference, non-member pass using promo code CANARY15. Register here.