DOD Invests in Critical Minerals Ahead of RFS Ruling
In December 2021, the White House published the Biden-Harris Electric Vehicle Charging Action Plan, outlining the Biden administration’s push for 50% of electric vehicle sale shares by 2030.
To initiate the electric vehicle push, the U.S. Department of Defense awarded $35 million on Tuesday to California-based MP Materials to increase the mining of rare earth elements—a series of chemical elements founds in the earth’s crust that are used in modern technologies.
Chip Flory and Jim Wiesemeyer spoke during the Online Top Producer Summit. Learn more here.
Diminishing Reliance
MP Materials owns and operates Mountain Pass, the only integrated rare earth mining and processing site in North America. For 2022, the company set their eyes on high-purity Neodymium-Praseodymium (NdPr) oxide, the primary ingredient in the world’s most efficient and highest strength permanent magnets.
The Biden administration laid a stake in MP Materials for their battery plans that will likely power future fleets of electric vehicles. With the funds, MP Materials intends to expand separation and processing of the mined elements, which they eventually incorporate into magnets in their Texas facility.
According to Sameera Fazili, deputy director of the National Economic Council, the U.S. was previously reliant on China to produce magnets. In an AgriTalk episode on Tuesday, Fazili told Host Chip Flory we can expect full production of U.S.-made magnets by 2025.
RFS Reset
The U.S. Department of Energy data shows electric vehicles sales began a sharp, upward trend in 2018, tapering off in 2020. Conversely, conventional vehicles tanked from 2019 to 2020, dropping from 15.3 million to 12.7 million, respectively.
With the rise in electric vehicles, the EPA published its proposal to set the 2022 Renewable Fuel Standard (RFS) implied conventional renewable fuel requirement at the statutory volume of 15 billion gallons.
Jim Wiesemeyer, ProFarmer policy analyst, says the EPA will make their formal ruling on the RFS in May. However, Congress’ authorization of the RFS concludes at the end of 2022.
“Congress, with the executive branch, is going to have to come up with a reset of RFS because it’s been based on gasoline consumed,” he says. “With the rise of electric vehicles, the RFS is going to have to be rejiggered.”
Wiesemeyer and Flory both agree the RFS will be a “fierce” topic to debate in Congress, as there are opponents and proponents of biofuels.
