U.S. Senator Joe Manchin stated at the LNG Allies’ Transatlantic Energy Security Forum IV on Tuesday, April 5th that he will not sign the aggressive electric vehicle push championed by President Joe Biden.
Manchin opposed the Democrats’ attempt to advantage union-made electric vehicles (EVs) raising two objections, according to a report by the Washington Examiner.
The first objection relates to where will revenue from taxpayer-funded public charging stations actually ends up. The second concerns underdeveloped U.S. critical mineral supply chains.
The Biden administration aimed at reducing the carbon footprint of the transportation sector aspiring to have EVs make up 50% of new vehicles by 2030. However, Democrats failed to pass additional tax credits which would incentivize EV purchases, mostly due to Manchin’s opposition.
Political tussle results in stocks tumbling
Apparently, this recent political tussle sent the lithium industry stocks, most of which can be followed via the Global X Lithium & Battery Tech ETF (NYSEARCA: LIT), tumbling.
Lithium names were recently rising following an initial report that President Biden would sign the Defense Production Act which would encourage domestic minerals production.
Minerals needed to make batteries for electric vehicles would be readily available in the U.S. via this Act however political opposition to this push is on the rise. Calls to be more open-minded in the U.S. energy policy response to the war in Ukraine are mounting.
Investors in lithium stocks apparently succumbed to the pressure and major lithium stocks dropped from 3.65% to 10.79% in a day.
As with most new initiatives political turmoil is expected to separate the wheat from the chaff. Recent energy, food, and commodity price hikes have the markets on edge coupled with the war in Ukraine.
Investors’ eyes will be on the new developments regarding the Biden administration’s push to make EVs more ubiquitous access U.S. cities. Volatility will most probably remain with us for the foreseeable future until the market and geopolitical issues stabilize, hence investors should remain vigilant.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.