Joe Biden's campaign privately told US mining companies that it will support increased domestic production of metals used to make electric vehicles, solar panels and other products critical to his climate plan, according to three sources familiar with the matter, which will be a boon for mining industry.
The Obama administration enacted stringent environmental regulations that slowed the growth of the US mining sector during his tenure. Biden, who served as Obama's vice president and is respected in conservation circles, was expected to continue in this vein.
The US Democratic presidential candidate also supports bilateral efforts to develop the domestic supply chain for lithium, copper, rare earths, nickel and other strategic materials that the United States imports from China and other countries, sources said.
President Donald Trump, Biden's Republican opponent in the November 3 election, has issued executive orders to encourage U.S. mining.
In a sign that miners are betting on a friendly welcome from Biden, executives at Glencore Plc, which controls PolyMet Mining Corp., view the Minnesota copper project as a long-term investment and do not plan to scale back if Biden wins, a source familiar with the company's thinking told Reuters ...
This project was considered one of those that the Biden administration could harm, reflecting Obama's environmental stance.
PolyMet, Glencore and Biden's campaign declined to comment.
Washington has been forced to rethink its long-term strategy for sourcing in the United States as China has become the world's largest producer or consumer of virtually all metals used to make electric vehicles, cell phones, weapons and other high-tech equipment.
“The Biden administration will focus on clean energy, and in order to get more solar panels, you need more raw materials,” said one source, on condition of anonymity. "These materials do not come out of the test tube."
Biden agrees with the broad intention of Trump's orders to encourage domestic mining, two sources said, but opposes Trump's anti-Chinese rhetoric and his attempts to make it easier to obtain federal permits.
Biden said he plans to spend $ 2 trillion on electric vehicle infrastructure and other green projects if he wins.
ScotiaBank analysts predict Biden's plan will bring long-term benefits to copper, one of the best electrically conductive metals. Electric vehicles use twice as much copper as internal combustion engines.
This could support efforts by Twin Metals subsidiary of Chilean mining company Antofagasta Plc to obtain federal permits for a copper mine in Minnesota.
Twin Metals said it is confident it can develop the mine safely.
Lithium miners, including Lithium Americas Corp, Albemarle Corp, Standard Lithium Corp, and others, are especially seen as additional winners during the Biden presidency, as white metal is key to making electric vehicle batteries.
Donations from U.S. lithium company employees to Democrats have nearly doubled this year from 2016 levels, campaign reports said.
“Better recovery requires miners' involvement,” said Rich Nolan, head of the National Mining Association, an industry trading group. "Biden's campaign understands the need for internal supply chains."
