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Biden Withdraws $500 Million Bid to Build More Electric Vehicles in Ukraine Aid Bill

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REVEALED: Biden halted $500 million bid to build more electric vehicles in Ukraine’s auxiliary law by giving more money to search for critical battery minerals

  • Both Biden and Ukrainian leaders had said the $40 billion emergency aid package was essential to Ukraine’s war against Russia
  • That package included half a billion dollars to be allocated under the Defense Production Act to companies acquiring critical battery minerals
  • That’s on top of the $750 million DOD was allowed to dole out to mining companies when Biden first enlisted DPA for critical minerals.
  • Those funds also build on the $7 billion in federal funding from the bipartisan infrastructure law last year

President Biden has put in another $500 million to fund production of the minerals used to make batteries for electric cars in Ukraine’s relief bill passed by Congress.

Both Biden and Ukrainian leaders had said the $40 billion emergency aid package was essential to Ukraine’s war against Russia. But that package included not only military aid, but also half a billion dollars to be allocated under the Defense Production Act to companies acquiring critical battery minerals such as nickel, cobalt, lithium and graphite, Bloomberg first noted.

That comes on top of the $750 million that the Department of Defense (DOD) was allowed to hand out to mining companies in March when Biden first invoked the Defense Production Act for critical minerals.

Those funds also build on the $7 billion in federal funding from last year’s bipartisan infrastructure bill that companies are now competing to fund the refining, manufacturing and recycling of batteries for electric vehicles.

The $40 billion aid bill to Ukraine included $20 billion to fund direct transfers of advanced weapons systems to Ukraine, $8 billion in general economic aid, $5 billion to address food shortages around the world and more than $1 billion in aid for refugees, in addition to the $500 million for mineral production. The bill passed in the Senate 86 to 11.

Biden tests the new Ford F-150 electric lightning truck as he visits the VDAB Ford plant in Dearborn, Michigan, USA on May 18.

President Biden has put in another $500 million to fund production of the minerals used to make batteries for electric cars in Ukraine's relief bill passed by Congress

President Biden has put in another $500 million to fund production of the minerals used to make batteries for electric cars in Ukraine’s relief bill passed by Congress

The Pentagon has so far transferred only about $700 million of that package in military aid to Ukraine.

Biden continues to subsidize electric vehicles even without his Build Back Better account, which fell apart over inflation concerns.

Build Back Better had earmarked $320 billion for clean energy, but the talks petered out as inflation started to rise. With inflation at 8.3 percent higher than it has been in 40 years, Biden has been lashing out at both sides for his loose spending stance.

Biden’s goal is to have half of the cars and trucks on the road produce zero emissions by 2030, a goal that should see current electric car production grow 15-fold, according to DOD documents released by the government. Bloomberg.

Manufacturers are short of essential minerals such as lithium and nickel needed for EV batteries due to the war in Ukraine and trade tensions, and the price of nickel has risen about 50 percent since last year. Such shortages have led EV manufacturers like Tesla and BYD to raise car prices.

Awash with cash, companies could drive mineral prices even higher as they scramble to find supplies, equipment and labor.

And with gas prices down to $4.76, slightly less than double what they were when Biden took office, electric vehicles still remain out of reach for most middle-class households — the average purchase price of an EV in April was up to $65,000. an increase of 16 percent from last year.

Sales of all-electric and hybrid-electric vehicles nearly doubled in 2021, up from 608,000 that year versus 308,000 in 2020, but shortages of supply are prompting customers to wait years to get their hands on some of their most popular models. to get.

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