Automotive
Forget Tariffs: Biden Should Look to Domestic Mining to Thwart Chinese EVs
Fr0m Heartland Daily News
By Rick Whitbeck
The Biden administration’s decision to raise tariffs on Chinese-manufactured electric vehicles, steel, computer chips, and other technological products is the epitome of a penny wise and a pound foolish.
To much of the nation, the news was a reelection flip-flop, or an attempt to prop up the electric vehicle industry Biden has prioritized since he took office, as part of his green agenda. The international supply chain for electric vehicles isn’t going to magically stop running through the Chinese Communist Party anytime soon.
If Biden really wanted to curb Chinese geopolitical power, he would make fundamental changes to his administration’s history of attacking domestic mining opportunities. Allowing development of copper, graphite, nickel, cobalt, and other critical and strategic minerals right here at home would go much further than imposing tariffs.
Biden has demonstrated affinity for promoting “net zero” policies and forcing transitions away from traditional energy supplies of oil, gas, and coal. In a nutshell, the attacks on domestic mining projects seem completely counterproductive.
According to the International Energy Agency, staggering quantities of subsurface elements will need to be mined by at least five times their current worldwide production by 2040 to meet the Biden administration’s green energy goals. Graphite, cobalt, and lithium all will be needed in quantities exceeding 25 times (or more) their current supplies. In the next quarter century, we will need twice as much copper than has been produced in the last 3,000 years. All of which is impossible when Biden won’t let us dig.
The U.S. has tremendous opportunities to have our own mineral resources. Yet, the Biden administration has thwarted their development at nearly every turn. For example, massive copper and nickel deposits could be developed in Minnesota at the Twin Metals and Duluth Complex projects, but Biden has ordered each of them off-limits for development. The Resolution Copper prospect in Arizona met a similar fate, with the Department of Interior placing on “indefinite hold” its approval.
The Western Hemisphere’s largest copper prospect is Alaska’s Pebble Mine. Kowtowing to environmental extremists—and ignoring a clean U.S. Army Corps of Engineers’ Final Environmental Impact Statement—the Environmental Protection Agency continues to stymie progress on a deposit worth more than $500 billion. All the while shutting down the possibility of 700 full-time jobs in an area of rural Alaska that has seasonal unemployment exceeding 20%.
Alaska has been the target of more than 60 administrative and executive orders targeting its resource-based economy since Biden assumed office. One of the most recent took place on Earth Day, when a congressionally-authorized road to the Ambler Mining District—an area rich in copper, zinc, and other strategic and critical minerals—was stopped by the Department of Interior.
Just like with the Resolution mine in Arizona, the Interior Department used “Indigenous opposition” as its deciding factor, even though many villages and tribes closest to the mining district publicly support the project and its future employment opportunities. In Alaska, the Biden administration literally blocks the road to the minerals Biden’s tariffs claim to protect.
Alaska’s governor, Michael Dunleavy, along with its entire congressional delegation, has been openly critical of the continued hypocrisy of the Biden administration when it comes to talking “net zero” and acting with vigor to oppose domestic mining projects. The same response has come from many within the Minnesota and Arizona congressional community. They’ve been unable to break through to the administration, as Team Biden chooses to listen to eco-activists and career bureaucrats with an anti-development agenda.
What would hurt China, empower America, and begin to chip away at the global imbalance would be mining and processing our crucial minerals and elements domestically. Let’s see if the Biden administration wises up to that fact, or if America tires of being subservient to the CCP and makes fundamental changes to federal leadership in November.
Rick Whitbeck is the Alaska State Director for Power The Future, a national nonprofit organization that advocates for American energy jobs and fights back against economy-killing and family-destroying environmental extremism. Contact him at [email protected] and follow him on X (formerly Twitter) @PTFAlaska
This article was originally published by RealClearEnergy and made available via RealClearWire.
To read more about domestic mining to escape reliance on China, click here.
To read more about clean energy and mining, click here.
Automotive
Biden-Harris Admin’s EV Coercion Campaign Hasn’t Really Gone All That Well
From the Daily Caller News Foundation
The future direction of federal energy policy related to the transportation sector is a key question that will be determined in one way or another by the outcome of the presidential election. What remains unclear is the extent of change that a Trump presidency would bring.
Given that Tesla founder and CEO Elon Musk is a major supporter of former President Donald Trump, it seems unlikely a Trump White House would move to try to end the EV subsidies and tax breaks included in the Inflation Reduction Act (IRA). Those provisions, of course, constitute the “carrot” end of the Biden-Harris carrot-and-stick suite of policies designed to promote the expansion of EVs in the U.S. market.
The “stick” side of that approach comes in the form of stricter tailpipe emissions rules and higher fleet auto-mileage requirements imposed on domestic carmakers. While a Harris administration would likely seek to impose even more federal pressure through such command-and-control regulatory measures, a Trump administration would likely be more inclined to ease them.
But doing that is difficult and time-consuming and much would depend on the political will of those Trump appoints to lead the relevant agencies and departments.
Those and other coercive EV-related policies imposed during the Biden-Harris years have been designed to move the U.S. auto industry directionally to meet the administration’s stated goal of having EVs make up a third of the U.S. light duty fleet by 2030. The suite of policies does not constitute a hard mandate per se but is designed to produce a similar pre-conceived outcome.
It is the sort of heavy-handed federal effort to control markets that Trump has spoken out against throughout his first term in office and his pursuit of a second term.
A new report released this week by big energy data and analytics firm Enverus seems likely to influence prospective Trump officials to take a more favorable view of the potential for EVs to grow as a part of the domestic transportation fleet. Perhaps the most surprising bit of news in the study, conducted by Enverus subsidiary Enverus Intelligence Research (EIR), is a projection that EVs are poised to be lower-priced than their equivalent gas-powered models as soon as next year, due to falling battery costs.
“Battery costs have fallen rapidly, with 2024 cell costs dipping below $100/kWh. We predict from [2025] forward EVs will be more affordable than their traditional, internal combustible engine counterparts,” Carson Kearl, analyst at EIR, says in the release. Kearl further says that EIR expects the number of EVs on the road in the US to “exceed 40 million (20%) by 2035 and 80 million (40%) by 2040.”
The falling battery costs have been driven by a collapse in lithium prices. Somewhat ironically, that price collapse has in turn been driven by the failure of EV expansion to meet the unrealistic goal-setting mainly by western governments, including the United States. Those same cause-and-effect dynamics would most likely mean that prices for lithium, batteries and EVs would rise again if the rapid market penetration projected by EIR were to come to fruition.
In the U.S. market, the one and only certainty of all of this is that something is going to have to change, and soon. On Monday, Ford Motor Company reported it lost another $1.2 billion in its Ford Model e EV division in the 3rd quarter, bringing its accumulated loss for the first 9 months of 2024 to $3.7 billion.
Energy analyst and writer Robert Bryce points out in his Substack newsletter that that Model e loss is equivalent to the $3.7 billion profit Ford has reported this year in its Ford Blue division, which makes the company’s light duty internal combustion cars and trucks.
While Tesla is doing fine, with recovering profits and a rising stock price amid the successful launch of its CyberTruck and other new products, other pure-play EV makers in the United States are struggling to survive. Ford’s integrated peers GM and Stellantis have also struggled with the transition to more EV model-heavy fleets.
None of this is sustainable, and a recalibration of policy is in order. Next Tuesday’s election will determine which path the redirection of policy takes.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Automotive
Trudeau’s new vehicle ban is a non starter
From the Canadian Taxpayers Federation
Author: Kris Sims
The Trudeau government’s ban on new gas and diesel vehicles is a nonstarter for three powerful reasons.
First, Canadians want to drive gas-powered minivans and diesel pickups.
Second, Canada does not have the electrical power to fuel these battery-powered cars.
Third, Canadians do not have the money to build the power-generating stations that would be needed to power these government-mandated vehicles.
Let’s start on the showroom floor.
The Trudeau government is banning the sale of new gasoline and diesel-powered vehicles by 2035.
In about 10 years’ time, Canadians will not be allowed to buy a new vehicle powered by an internal combustion engine because the government will forbid it.
Canadians disagree with this.
The Canadian Taxpayers Federation released Leger polling showing 59 per cent of Canadians oppose the federal government’s ban on new gas and diesel vehicles.
Among those who are decided on the issue, 67 per cent of Canadians, and majorities in every demographic, oppose the Trudeau government’s ban.
Now let’s look under the hood.
Canada does not have the electricity to charge these battery-powered cars. The government hasn’t presented any plan to pay for the power plants, transmission lines and charging stations for these government-mandated vehicles.
That leaves a big question: How much will this cost taxpayers?
Canada’s vehicle transition could cost up to $300 billion by 2040 to expand the electrical grid, according to a report for Natural Resources Canada.
Let’s look at why this will cost so much.
The average Canadian household uses about 10,861 kWh in electricity per year. The average electric car uses about 4,500 kWh of energy per year.
The average household’s electricity use would jump by about 40 per cent if they bought one EV and charged it at home.
Canada is home to 24 million cars and light trucks that run on gasoline and diesel, according to Statistics Canada.
If all those vehicles were powered by electricity and batteries, that fleet would use about 108 million mWh of power every year.
For context, one large CANDU nuclear reactor at the Darlington nuclear plant in Ontario generates about 7,750,000 mWh of power per year.
Canada would require about 14 of these reactors to power all of those electric cars.
Building a large nuclear reactor costs about $12.5 billion.
That’s a price tag of about $175 billion just for all the power plants. The Natural Resources report estimates the transition to electric vehicles could cost up to $300 billion in total, when new charging stations and power lines are included.
Who would be paying that tab? Normal Canadians through higher taxes and power bills.
Canadians cannot afford the cost of these mandatory electric vehicles because they’re broke.
Canadians are broke largely because of high taxes and high inflation, both driven by the Trudeau government’s wasteful spending.
About half of Canadians say they are within $200 of not being able to make the minimum payments on their bills each month. That’s also known as barely scraping by.
Food banks are facing record demand, with a sharp increase in working families needing help. That means parents who are holding down jobs are still depending on donated jars of peanut butter to feed their kids.
Rubbing salt into the wound, the federal government also put taxpayers on the hook for about $30 billion to multinational corporations like Honda, Volkswagen, Stellantis and Northvolt to build EV battery factories.
The roadside sobriety test is complete, and the Trudeau government is blowing a fail on this policy.
Canadians are opposed to the Trudeau government banning the sale of new gasoline and diesel-powered vehicles.
Canada does not have the electricity to charge these battery-powered cars.
Canadians don’t have the money to build the new power plants, transmission lines and charging stations these vehicles would demand.
It’s time to tow this ban on new gas and diesel vehicles to the scrapyard.
Franco Terrazzano is the Federal Director and Kris Sims is the Alberta Director of the Canadian Taxpayers Federation
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