Biden admin to use Defense Production Act to boost heavy metal mining for microelectronics

The heavy metals to be mined are in response to an announcement made by China that it will start putting controls on the exports of gallium and germanium. Both are heavy metals used in microchip and electric vehicle manufacturing.

The Defense Production Act, which Biden is using to advance the mining of elements, was passed in 1950. It is a policy made to "oppose acts of aggression and to promote peace by insuring respect for world law," and gives the president the authority and power over industries "he deems necessary or appropriate to promote the national defense."

A spokesman for the Department of Defense (DOD) said on Thursday, "The Department is proactively taking steps using Defense Production Act Title III authorities to increase domestic mining and processing of critical materials for the microelectronics and space supply chain, including gallium and germanium."

The move comes in a series of economic advances by China on grabbing further control of the microchip industry.

An article from the China Daily titled "China urges concrete actions by US on economic, trade ties," talked about how China's Ministry of Finance believes that US-China trading is a "win-win" for both countries.

A Chinese foreign ministry spokesman, Wang Wenbin, said that the actions are reasonable and that the action "is not targeted at any specific country."

Questions concerning President Biden's connections with Chinese officials have grown as a concern to Republicans in Congress. Allegations about Hunter Biden's activities receiving money from Chinese companies have also drawn criticism.

Dak Hardwick, the vice president of international affairs at the Aerospace Industries Associated, however, is skeptical the moves from China will make a long-lasting impact on the market. He said the US will have to find alternative sources for the metals eventually "whether it's direct mining, direct manufacture, direct refining or production, or from a recycling program from obsolete equipment."