Biden's clean-energy law and subsidies jeopardize the global market for essential minerals, warns a UK government minister.
The Inflation Reduction Act allocates nearly $400 billion in incentives to boost green-energy spending in the US and regain control of critical metal supply chains from China.
UK Business Minister Nusrat Ghani highlights the challenges posed by the IRA, noting its potential to distort the market due to the lure of US subsidies.
Essential metals for batteries, solar panels, and wiring are crucial for global decarbonization. China dominates their production, raising concerns about supply chain dependence.
Electric-vehicle tax rebates under the IRA have prompted the construction of US refineries to process minerals from friendly nations, triggering responses from Western governments.
The European Union's Critical Raw Materials Act aims to reduce reliance on Chinese suppliers by facilitating financing, permitting, and trade alliances for mining and refinery projects.
UK Prime Minister Rishi Sunak intends to collaborate with Biden on a critical minerals deal, reflecting the international response to address supply chain vulnerabilities.
Scott Woodard of the US Office of Energy Transformation emphasizes the need for other countries to adopt similar measures to lower prices and collectively benefit, acknowledging the US cannot solve supply-chain vulnerabilities alone.