Gregory Beischer, CEO of Alaska Energy Metals Corporation. Engineering Technologist, Geologist and Mining expert.
The U.S. is about four times more dependent on China’s minerals and their processing than it was on the Middle East at the peak of its oil dependence. Fast forward to today, the U.S. has become the leading producer of oil globally.
I think the U.S. must do the same with its mineral supply. And it can increase its domestic sources to ensure mineral security by tapping into its potential in places like Nevada and Alaska, where the mineral potential is “off the charts.”
Minerals, The First Link Of Supply Chains
Minerals provide the first link in many supply chains across the U.S. and the global economy. Minerals that are essential to the economy and also have fragile supply chains are what’s referred to as critical minerals. The U.S. has 50 of them.
However, heightened attention has been placed on vulnerabilities in the clean energy technology supply chain because the Biden administration set a goal to decarbonize transportation by 50% by 2030—to meet the country’s larger climate goals.
That means in six years, we need to be able to increase battery production from 257 gigawatt-hours in 2023 to over 1,000 hours by 2030, “enough batteries for ten million vehicles per year, roughly the number produced in the United States annually.”
To do this, we need a steady supply of cobalt, graphite, lithium, manganese and nickel—the key ingredients in EV batteries. And this is where the problem comes in.
In 2021, an assessment conducted by the U.S. Geological Survey found nickel to be a “single point of failure” for the country. It confirmed that the domestic nickel supply was nearly absent, and the country was completely trade-dependent. To make things more complicated, tensions between the U.S. and China, which controls most of the world’s nickel in Indonesia, have intensified in recent years and months.
Nickel And Mineral Rich Alaska
The U.S. is among the largest consumers of nickel in the world, which means it needs a lot of it. As a country, we are getting better at recycling nickel, but we will still have to mine a lot of the metal to meet future demand.
Alaska has been ranked by mining executives worldwide as among the richest mineral areas on Earth. Today, Alaska provides 80% of the U.S.’s production of zinc, 44% of the country’s lead, and about half of the country’s production of silver. Alaska holds a gold standard environmental and regulatory regime and is known to adhere to some of the world’s strictest responsible mining practices.
It is known to contain large deposits of metal ore that have never been mined, and a more recent discovery by my company shows it houses one of North America’s largest nickel deposits. The deposit contains nickel, copper, cobalt, chromium, iron, palladium, platinum and gold. If developed, it could provide the U.S. with a greater capacity for long-term industrial and military readiness, support domestic metal needs and more.
It should be noted that there is also one nickel mine in Michigan’s Upper Peninsula, the Eagle Mine. It is a small, high-grade nickel mining and copper project. Its end of life is anticipated in 2027.
Beyond supply security, the government’s current efforts are in part motivated by the desire to remove foreign dependence because it does not want to support irresponsible and environmentally unfriendly practices.
Other States With Essential Critical Metals
While Alaska is home to many minerals, there are other states within the U.S. that are equally important to the country’s ambitions of becoming a leader in critical metals. Take Nevada, for example. The state is historically known for its gold and silver supply, but fast forward to the present day, Nevada is now considered the “Silicon Valley of lithium” because it is home to one of the largest lithium deposits in the world.
Graphite, another key metal in our transition to a clean energy economy, can be found in Alaska in addition to Alabama, Colorado, Montana, New York, Pennsylvania and Texas. Graphite holds a parallel value to nickel in the development of EV batteries. In fact, in a recent interview, Tesla CEO Elon Musk made a statement that sparked interest regarding this. He said, “Our [battery] cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite.”
To truly become a leader in critical metals, the U.S. will need to extend and collectively rest its dependence on each of these states.
Considerations For Business Leaders
Demand for these metals is anticipated to skyrocket by as much as 4,000% as the world makes its transition. With sustained and increasing pressure to meet demand, mining industry leaders must not forget the very premise of the transition, which is sustainability.
To that end, they should look to utilize methods that may lead to the growth of net-zero mining operations. They should aim to use the latest advancements in mining technology no matter the capital expense, and they should remain transparent with the communities they work in.
Transparency within communities in which mining projects take place is essential, and there are many ways to go about doing this. This can be done by attending and presenting your company project at town halls and chambers of commerce meetings.
Extend invites for stakeholders to visit your project, and proactively communicate about the project intentions and the possible benefits it may bring to the local area. Consultations and general collaborations between mining companies and communities open the door to addressing potential concerns and also expectations.
It’s important to engage with the community regularly instead of just once at the onset of the project. Mining projects can spur economic growth, and one of the best ways to ensure your project positively impacts a community immediately is through the employment of local residents. Additionally, utilizing local accommodations and eating at local restaurants instead of national chains will support small businesses within the area.
These actions could not only shift the U.S. toward becoming a leader in the critical metals space; they would make it a sustainable one.
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