Lithium is a critical raw material used in the manufacturing of Electric Vehicles (EV) and grid storage batteries.
The US recently signed into law policies aimed at re-shoring critical minerals supply chains - the USA considers lithium a critical mineral.
The US$400BN Inflation Reduction Act (IRA) mandates that by the year 2027, 80% of the critical minerals in US-made EV batteries must come from US-based mines or from countries with a free trade agreement with the US.
ASX listed Ioneer Limited recently secured US$700M (AU$1BN) from the US government for its lithium-boron project in Nevada, Piedmont Lithium also secured US$141.7M for its lithium plant in Tennessee.
We think that US-based lithium projects will benefit the most from the wave of capital the US government is committing to domestic supply chains.
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