Staff Reports
In a new development that puts a major wrench in President Biden’s plan to replace gas-powered vehicles with electric vehicles (EVs), the free market economy has once again found a way to hinder the administration’s agenda. The Wall Street Journal reports that the prices for minerals crucial for the production of EV batteries have skyrocketed, causing manufacturers to scale back on production expansion. This disruption not only poses a threat to Biden’s timeline for transitioning the country away from gas-powered cars but also highlights the dangers of his scheme to manipulate the free market.
Biden's Electric Vehicle Efforts Run Into Unexpected Roadblock: 'This Situation Is a Bit Dangerous' https://t.co/p3fUohdlGd
— Ron Peck (@RonPeck20) November 22, 2023
Industry experts have expressed concern over the situation, with Anthony Milewski, CEO of battery metals investment company Nickel 28, warning that mines needed for the production of these minerals are not being built. The absence of these essential mining projects undermines Biden’s ambitious goal of having 50% of all new vehicle sales in the U.S. be EVs by 2030. Currently, only about 8% of newly purchased cars are electric, falling far short of the administration’s target.
The challenges facing new mining projects include opposition from local communities, environmental concerns, and red tape. As a result, production-expansion delays are being felt globally, according to Paul Graves, CEO of lithium producer Livent. The demand for minerals such as lithium, cobalt, and nickel is projected to outpace supply over the next seven years. However, due to the current low prices of these minerals, producers have little motivation to invest in expanding their capacity.
Although the current situation poses obstacles, proponents of the free market argue that it will ultimately find a way to overcome them. In the long run, as mineral prices drop, the cost of EV batteries is expected to decrease, making electric vehicles more affordable and driving up demand. This increased demand will then lead to higher prices for EVs, their batteries, and the minerals needed for their production. The incentive for producers to expand their operations will be further bolstered by these rising prices, demonstrating once again the ingenuity of the free market.
While President Biden may have thought he had a foolproof plan for phasing out traditional gas-powered vehicles, the free market has once again proven to be a formidable force. Despite the best efforts of central planners, it seems that life, just like the free market, will always find a way.
