U.S. Miners Rush to Secure Government Loans Amid Political Uncertainties

U.S. miners and battery recyclers are racing to lock in government loans before a potential presidential shift. Falling mineral prices and lagging EV sales have pushed the industry to seek federal funding, vital under Biden's administration but uncertain under Trump's potential return. Failure could halt critical mineral projects vital for the energy transition.

U.S. miners and battery recyclers are racing to secure billions in government loans before January, fearing that a potential re-election of former President Donald Trump might block essential funding. This rush comes amid tumbling mineral prices and lower-than-expected electric vehicle (EV) sales, which have unnerved private financiers and placed the conservative mining industry in a position of needing federal support.

Under President Joe Biden, the U.S. Department of Energy's Loan Programs Office (LPO) has conditionally awarded nearly $25 billion to facilitate projects crucial for the energy transition. These loans, pivotal for recycling batteries and processing minerals like lithium, still require final approval. However, Trump's campaign promises to end the EV mandate and shutter the LPO add urgency to the mining and energy sectors' efforts to close loans before his potential return.

Industry experts warn that the delay in finalizing these loans could freeze numerous domestic mineral projects, impacting the Western EV supply chain. Without this funding, U.S. miners may fail to counter China's market dominance. The stakes are high, as Biden's administration has been meticulously reviewing loan applications, a process that could extend into the next presidency.

(With inputs from agencies.)