Biden shouted to promote the production of Clean Energy Materials Lithium Mine and Battery Industry was "named" to benefit

While announcing the release of 180 million barrels of strategic crude oil reserves, US President Joe Biden also raised a long-awaited topic in the capital markets on Thursday: promoting the development of key clean energy minerals.

Although the United States is the world's largest crude oil producer, Russia's activities half a world away can still affect the wallets of ordinary Americans, according to documents on the White House website. So the president of the United States will announce a commitment to energy independence, with the focus of the strategy on completely reducing dependence on crude oil.

The White House says President Joe Biden will sign an executive order authorizing the use of the Defense production Act to ensure the key materials needed to advance the transformation of clean energy. The White House specifically pointed out that the order will authorize the mining and processing of lithium, nickel, cobalt, graphite and other materials needed to produce high-capacity batteries.

At the end of the announcement, Biden is considering further use of the Defense production Act to expand beyond the mining and materials industries to ensure a safer, cleaner and resilient new energy system.

Although the announcement itself is not clear, the information is enough to stimulate Wall Street hype. The United States Yabao, Livent and Lithium Americas once saw a collective rise in intraday trading, and the rare earth industry flag MP Materials, which was not mentioned in the announcement, also rose.

The US government is expected to spend real money to support the mining companies to carry out research on new projects or to increase the capacity of existing projects, although it is not clear how much government subsidies will be.

Christopher Kapsch, an analyst at Loop Capital Securities, said that by invoking the Defense production Act, the Biden administration may imply full support for the US electric vehicle and battery materials industry to some extent. In addition to some of the large companies we are familiar with, small mining companies such as Piedmont, ioneer and Standard Lithium will benefit more because the executive order will help them speed up the timeline of production or reduce capital expenditure.

Seth Goldstein, a strategist at Morningstar Securities, said the administrative order will reduce the cost of building new capacity. It is not clear how much money can be used for upstream mining, but there is no doubt that investment in downstream production facilities will at least get a piece of the pie.