ASX shares might benefit from the United States President Joe Biden’s plan to source metals for its electric vehicle (EV) industry from nations including Australia, Canada, and Brazil.
According to reporting by Reuters, Biden is turning to the US’ allied nations to source metals used in EV manufacturing, which he plans to increase during his presidency.
2 US administration officials also told Reuters the US has allocated $174 billion to EV manufacturing.
The Australian Financial Review reported that the move would help the US move away from relying on Chinese metals for its EV industry.
Deputy White House national climate adviser Ali Zaidi was reported by Reuters to have said that the US is looking to invest in supply chains that include recycling.
Let’s take a look at 3 ASX shares that could benefit from the US’ international sourcing of EV metals.
ASX electric vehicle-focused shares
Ecograf Ltd (ASX: EGR)
Ecograf is an Australian battery anode material producer. It already focuses on selling its products to EV and lithium-ion battery manufactures.
Ecograf claims its Western Australian facility is the worlds first to process purified spherical graphite outside of China.
Spherical graphite is a key component of lithium-ion batteries, which are used in EVs.
Additionally, Ecograf sources its graphite from its Epanko Graphite Project, located in Tanzania.
Ecograf is focused on making the production of spherical graphite more eco-friendly. It also works to recycle disused lithium-ion batteries.
Galaxy Resources Limited (ASX: GXY)
Galaxy Resources is an Australian lithium producer.
The company operates the Mt Cattlin Spodumene Project in Western Australia. Mt Cattlin’s products are also qualified to be used in the global lithium-ion battery chain.
Currently, most of the products of Mt Cattlin are exported to Asia.
Galaxy also has a lithium project in Canada, named James Bay. James Bay is still in development, but Galaxy already plans for its products to be used in the North American EV industry.
Lynas Rare Earths Ltd (ASX: LYC)
Finally, Lynas Rare Earths may also benefit from the US’ spin towards internationally sourced metals.
According to Lynas, it’s the largest producer of separated rare earths outside of China. Additionally, its rare earths can already be used in EV manufacturing.
Its Mt Weld Central Lanthanide Deposit is located in Western Australia.
Currently, Lynas sends its products from Mt Weld to Malaysia to be processed. Though it’s in the process of building a new processing plant in Kalgoorlie.