Electric cars

How it will help automakers

President Joe Biden speaks on the South Lawn of the White House in Washington on August 5, 2021, during an event on clean cars and trucks.

President Joe Biden said Thursday he would invoke the Defense Production Act to boost domestic mining and production of key minerals used in electric vehicles, a big step to help Detroit automakers switch to electric vehicles.

It was part of a larger announcement about gasoline prices.

The move means battery materials will be added to the list of items covered by the 1950 law, which former President Harry Truman invoked to make steel for the Korean War and which President Donald Trump called to boost mask production amid the COVID-19 pandemic. .

The Detroit Three are investing billions in an all-electric future, including building new factories to assemble batteries for electric vehicles. As for Biden, he is delivering on his promise to help accelerate the adoption of electric vehicles.

“We need to end our long-term dependence on China and other countries to supply the inputs” used in American electric vehicles, Biden said.

By invoking the Defense Production Act to incentivize companies to mine and process more minerals for electric vehicles, it will help the United States fight climate change and lead to the creation of new jobs.