"Looming shortage of critical minerals by 2027"

The U.S. Energy Department announced Thursday preliminary approval for nearly $710 million in loans to advance electric vehicle (EV) technology manufacturing ventures, as part of a broader effort to bolster clean energy projects.

Notably, the Biden administration still retains $221.8 billion in loan capacity dedicated to supporting such initiatives.

In a significant development, South Korean company SK Siltron CSS is poised to receive a substantial share, amounting to $544 million, to expand its plant located in Bay City, Michigan. This facility specializes in the production of high-power silicon carbide wafers crucial for electric vehicles.

Simultaneously, American Battery Solutions has secured conditional approval for a $165.9 million loan to amplify its EV battery pack assembly operations, spanning locations in Springboro, Ohio, and Lake Orion, Michigan. These expansions hold the potential to provide employment opportunities for up to 460 individuals.

Jigar Shah, the director of the energy department's loan program office, revealed that his office has seen a surge in financing applications, totaling $80 billion over the past two months. This influx, as he pointed out, is from "very sophisticated players."

As of December 31, 2023, the department has dispensed a total of $34.43 billion, while applications for loans have reached an impressive $263.1 billion by the end of January.

Shah drew attention to China's dominant position in supplying these critical minerals, resulting in a market oversupply and subsequent price decline.

Nevertheless, he highlighted the insights of government advisers, who foresee a looming shortage of critical minerals by 2027, underscoring the importance of strategic investments in this sector to ensure future sustainability and independence.

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