Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended

Country / jurisdiction: United States · Year: 2022 · Status: In force · Level: National · Type: Voluntary

In March 2022, President Joseph Biden Jr. invoked the Defense Production Act with this presidential determination on the subject of critical mineral production and supply. The memorandum, pursuant to the Defense Production Act, emphasises the importance of sustainable and responsible domestic production, waiving certain Act requirements to expedite this process. It outlines the President's commitment to securing a reliable domestic supply of critical materials for large-capacity batteries, vital for the clean energy economy.

Specifically, the determination declares that meeting the requirements of a clean energy economy with a reliable and sustainable supply of these minerals is essential to the national defense by invoking Section 303 of the Defense Production Act. President Biden also determined that these minerals must be produced in an environmentally sustainable and responsible manner through responsible domestic mining and processing, recycling and reuse and recovery from secondary sources, such as waste byproduct collection.

While there is no specific list of minerals given in this presidential determination, the term that is used by president Biden is “strategic and critical minerals.” Examples include lithium, nickel, cobalt, graphite and manganese. The scope of this presidential determination includes the production of large-capacity batteries for the automotive, e-mobility and stationary storage sectors. The determination is to be executed by projects to create, maintain, protect, expand or restore domestic production capabilities. The President accordingly directs the Secretary of Defense to:

Support feasibility studies for mature mining, beneficiation and value-added processing projects

Work on by-product and co-product production at existing mining, mine waste reclamation and other industrial facilities;

Work on mining, beneficiation, and value-added processing modernisation to increase productivity, environmental sustainability, and workforce safety;

Conduct an annual survey of the domestic industrial base; and

Implement other activities authorised under the DPA.

Compliance with environmental laws is maintained and the determination does not create enforceable rights. The document concludes by authorising the publication of this determination in the Federal Register, underscoring its intent to strengthen national defence capabilities through a resilient and environmentally responsible domestic industrial base.

Official source: https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/31/memorandum-on-presidential-determination-pursuant-to-section-303-of-the-defense-production-act-of-1950-as-amended/