The Biden Admin Is Making It Easier to Find Great Investments
The electric vehicle (EV) market is booming.
There is little argument that the government is pushing EVs to succeed, too. The Biden administration’s federal agencies have bought five times as many EVs this year as they did in 2021.
The administration set a goal of 100% of all new light-duty federal vehicles being zero emission by 2027. And Bloomberg recently reported that it expects 50% of all new car sales to be zero-emission vehicles by 2030.
In order to meet that goal, the administration passed legislation providing tax breaks for EVs that meet certain criteria.
While this assistance isn’t the reason electric vehicle sales are rolling, it is driving manufacturing growth in the U.S. But the tax breaks require the vehicle manufacturers to meet some difficult criteria, including assembly in North America.
Half the tax credit also comes with a “critical minerals requirement.” That means companies need to source the metals for their EV batteries either from the U.S. or from a country that has a free-trade agreement with the U.S.
There are 20 countries that currently have those free-trade agreements in place. The ones below produce critical battery metals:
- Australia (Ni, Cu, Li, Rare Earths)
- Canada (Ni, Cu, Pb, Zn)
- Chile (Cu, Li, Pb, Zn)
- Columbia (Ni, Cu)
- Guatemala (Ni)
- Mexico (Cu, Pb, Zn)
- Morocco (Cu)
- Nicaragua (Cu, Pb, Zn)
- Oman (Ni, Cu, Pb, Zn)
- Panama (Cu)
- Peru (Cu, Pb, Zn)
That’s an interesting twist on sourcing material for EVs and batteries. It means that companies operating in these countries will get preferential treatment by EV makers working in the U.S.
This is good news for our New Energy readers. I recommended they invest in an American copper company back in September. And another of my recommendations covers a company with mining projects in Mexico and Chile, too.
We’ll likely see a boom in miners from these countries. And this is a trend we will keep reporting on. If you want to take advantage, click the banner below and get in on our next recommendation from New Energy.
Numbers to Know
Amount the Biden administration has committed to each of three tribes on the Pacific coast to relocate away from rising waters. The three tribes – two in Alaska and one in Washington state – are currently at risk of being washed away.
Number of “certified” sustainability-focused funds that hold companies linked to fossil fuels and aviation. That’s nearly half of the funds that “The Great Green Investment Investigation” were able to analyze. The data is very important for the future of sustainable investing.
The total metric tons of worldwide copper mine production in 2021. Global copper production has seen steady growth over the past decade, rising from 16 million metric tons in 2010. (STATISA)
What’s New in Sustainable Investing
Money Scoop breaks down how these requirements will make it easier for company 401(k) programs to incorporate sustainable funds. Plus, they play our favorite game: busting myths on how sustainable investing will affect your portfolio. It’s a good read.
The price at the pump started rising before Russia began its invasion of Ukraine in February this year. But after that move, the average gas price seemed to skyrocket. Now, CNN Business shows that prices have fallen to their lowest levels since February. Will they keep falling?)
Links We Like
“We’ve been hearing from practitioners and planners along the coasts that they need more information on shorter timescales – looking not 70 or 80 years into the future, but looking 20 or 30 years into the future[.] The bottom line is that when looking ahead to what we might experience in coming years, we need to consider these higher possibilities.” – Ben Hamlington, leader of the NASA Sea Level Change Team
“The U.S. and Canada are seeking a ban in the Pacific on two fishing devices, known as wire leaders and shark lines, that have proven devastatingly effective at catching huge numbers of sharks.” – Mongabay update on protections for Pacific sharks
“Solar panels can be a valuable investment for a homeowner, with benefits that extend beyond resale value. But not all homes reap those benefits, and you’ll need to do some research to figure out if the considerable upfront costs are worth it.” – Ask Real Estate column in the New York Times