Covid-19 outbreak slows US push to produce electric vehicle minerals, rare earths
- Pandemic has fuelled a bunker mentality among some executives
- Coronavirus could cause a year or two’s delay on projects: Morningstar
The Covid-19 pandemic is hobbling US efforts to produce lithium, rare earths and other materials used in electric vehicles and hi-tech equipment, dealing a blow to President Donald Trump’s plan to curb Chinese control of the strategic minerals sector.
As the pandemic has killed about 20,000 across the globe, US junior miners have slowed engineering work, environmental reviews and loan applications.
“We can just hit pause,” said Keith Phillips, chief executive of North Carolina’s Piedmont Lithium.
Piedmont, Lithium Americas and Pioneer, both of which have Nevada projects, have said they now face engineering or regulatory setbacks that could push back mine construction.
Most companies focused on US strategic minerals have large cash reserves after recent stock and bond offerings. While none have yet to report an employee testing positive, the virus has nevertheless fuelled a bunker mentality among some executives.
“[The] Coronavirus could cause a year or two’s delay on projects,” said Seth Goldstein, a minerals analyst at Morningstar. “That helps China right now.”