▶ 0:13:35Environment will now come to order. I will now recognize myself for an opening statement. Good morning. Welcome to today's hearing on the subcommittee on environment. A little over two months ago, this subcommittee held a hearing to analyze the impact of some of our major environmental laws on access to critical minerals and minerals that form the products essential to our health care, defense, transportation, energy and telecommunications sectors.
▶ 0:14:04The title of that hearing was help or hindrance the impact of U.S. environmental laws on critical minerals, supply chains, national security, and economic growth. In particular, we discussed some of the challenges associated with the environmental protection agencies, or epa's interpretation of the resource conservation and recovery act, rcra.
▶ 0:14:25While some of our witnesses explained that rcra had been a hindrance largely due to lack of regulatory clarity, there are also opportunities for it to be a help. Even as early as 1976, when ric was enacted to amend the solid waste disposal act.
▶ 0:14:44Congress included in that law its findings that methods are available to separate usable materials from solid waste, and the recovery and conservation of such materials can reduce the dependance of the united states on foreign resources. Epa has developed unique knowledge that should be leveraged to shore up domestic supply chains and identify opportunities to facilitate recovery of domestic material from discarded materials. This experience is not limited to solid waste management.
▶ 0:15:13Epa also coordinates the remediation of the nation's most contaminated sites. In recent years, epa has explored opportunities to use innovative technologies to recover valuable materials by cleaning up these contaminated sites.
▶ 0:15:33Epa currently manages a program called the environmental monitoring and remediation technology assessment, or mmt, to identify and recover critical minerals and waste materials at legacy mining sites.
▶ 0:15:47According to the united states geological survey, the united states is entirely reliant on imports for 13 of the 60 mineral commodities on its 2025 list of critical materials, and it is reliant on imports for over half of its consumption of another 20 minerals. Removing regulatory barriers to a more robust domestic recycling industry could allow us to recover more of these minerals from products already in the united states.
▶ 0:16:19Deliberate federal coordination has never been more important, with adversaries such as china demonstrating that they are willing and able to weaponize their control of crucial supply chains. Securing our fragile supply chains requires coordination across the entire federal government, and it is important for epa to have a seat at the table. To that end, we plan to discuss seven bills to eliminate unnecessary barriers to the growth of a strong domestic recycling industry.
▶ 0:16:47Establish epa as a leader of interagency efforts to recover critical minerals and support the remediation of contaminated sites, while identifying new domestic sources of valuable materials. I hope we can continue working together with our colleagues on the other side of the aisle to reach bipartisan agreement on these discussion drafts.
▶ 0:17:07I'm encouraged by our initial conversations, and I look forward to finalizing bills that can advance with bipartisan support to help us in these efforts. Today, we welcome four witnesses. First, we have david, uh, colon, uh, kentucky, uh, chief executive officer of serba solutions. Serba solutions is a leading battery recycling materials and management company.
▶ 0:17:34We're also joined by doctor jessica dunn, scientist clean transportation at the union of concerned scientists. Doctor dunn specializes in lithium ion battery sustainability research. We also welcome Mr. aaron goldberg, a principal at beverage and diamond, an environmental attorney. Mr. goldberg will call upon his decades of experience with the resource conservation and recovery act. Finally, we will also hear from Mr.
▶ 0:18:02Grayson buckingham, co-founder, chief executive officer and president of disha technologies. Disha has developed innovative technologies to recover minerals from legacy mine sites. I thank all of our witnesses for their time today, and I look forward to today's discussion. I now recognize the ranking member of the subcommittee, Mr. tonko, the gentleman from new york, for five minutes for an opening statement. >> thank you, Mr. chair.
▶ 0:18:27Today, the subcommittee will examine seven bills and discussion drafts seeking to enhance our national capacity to recover and utilize alternative sources of critical minerals. While I do have serious concerns about a couple of these bills, including any codification of president trump's executive orders, I also believe several of these proposals warrant our further attention. Democrats on this subcommittee have long recognized the potential of resource recovery and recycling to contribute to meeting our national critical mineral needs.
▶ 0:18:59Recycling can provide significant percentages of expected demand of key minerals needed for battery production. Untapped domestic supply not only reducing our current over reliance on foreign sources, but also creating more sustainable supply chains by alleviating some of the need for riskier environmental extractions.
▶ 0:19:23With that said, I recognize that turning a battery into its raw materials and then back into a battery is not an easy process. Batteries, when not properly handled or disposed of, do present some risks to workers, nearby communities, and yes, our environment. We know that has been the case with lead acid batteries, and it will remain true of lithium ion batteries.
▶ 0:19:47So while I am open to understanding better some of the regulatory barriers that are making it more difficult to add greater long term circular, circular energy to our critical mineral supply chains, I do not believe this should come at the expense of fundamental environmental and worker protections, and I do hope we can begin to figure out that balance today.
▶ 0:20:08While the drafts under consideration today warrant discussions, I believe congress can play a constructive role in moving us even further toward a shared goal of secure domestic critical mineral supply chains. Our environmental and safety regulations need not only be seen as a barrier to achieving our goals.
▶ 0:20:29States are already proving that smart regulations can push all stakeholders, from manufacturers to recyclers, to individual consumers, to being part of the solution. I would again suggest that responsible end of life management of batteries through a national product stewardship program, like extended producer responsibility can be an important step because once we have gone through the trouble of importing critical materials, sensible collection, reuse and recycling requirements can
▶ 0:21:00Ensure that those materials are recovered. That is how we can build for long term, sustainable management of our critical mineral supply chains and this type of more comprehensive approach to responsible, end of life management of batteries is not only possible, but preferable. It would guarantee valuable minerals are kept out of landfills, while also mitigating fire risks and enabling the repurposing of batteries when possible.
▶ 0:21:25I have been encouraged by the work happening at epa under both the biden and trump administrations to examine this challenge. I do hope we can learn from that effort and determine what additional action from congress may be necessary. Finally, while I have mostly focused on batteries this morning, I'm also encouraged by the environmental monitoring and remediation technology assessment initiative.
▶ 0:21:47If we can find opportunities for mineral recovery and legacy environmental remediation to work hand in hand, it could be a true win win situation. We must be careful not to create loopholes in the law to exacerbate environmental harms at these sites, but exploring how epa can support emerging remediation technologies as potential. And that work could be further expanded to support other valuable environmentally beneficial products, such as the mineral mineralization of carbon dioxide.
▶ 0:22:16Again, I want to thank the chair for today's discussion. There are some good opportunities to strengthen our domestic critical mineral supply if we're able to unlock that potential while maintaining appropriate environmental safeguards. With that, Mr. chair, I thank you and yield back. >> gentleman yields. I now recognize the chairman of the full committee, the gentleman from kentucky, Mr. guthrie, for five minutes for an opening statement. >> thank you. Thank you, chairman palmer, and thank you for holding this hearing. And I really appreciate all of our witnesses being here today.
▶ 0:22:46This congress, our environment subcommittee, has explored creative solutions to identify sources of critical materials and critical minerals here at home, so that we are less dependent on foreign adversaries like china. And I will say, uh, become far more acquainted in the last couple of years with this issue. But our our chairman of this committee has been focused on this for years. And it was absolutely correct that we have to deal with this and should have dealt with it sooner. But here we are.
▶ 0:23:13So, for example, in june of 25, the subcommittee held a hearing on the management of coal combustion residuals and evaluated the potential recovery of critical minerals from coal ash. In july of last year, the subcommittee met to assess state of our domestic recycling industry and opportunities to recover critical minerals from end of life electronics.
▶ 0:23:33This past april, we identified opportunities to modernize some of our major environmental laws to eliminate unnecessary barriers to stronger supply chains. Securing access to critical minerals is a daunting task. With geopolitical tensions, trade policy complexities, and economic rivalries complicating efforts to shore up our supply chain.
▶ 0:23:55This is why it's essential for all of our federal agencies to work together and harmonize their efforts to make sure we're all rowing in the same direction. The environmental protection agency has unique expertise regarding recovery of valuable materials from waste streams and complexities of our domestic recycling infrastructure.
▶ 0:24:14Today, we will consider seven pieces of legislation to further the recovery of critical minerals from waste streams that are already located with our with our within our country, and support the development of domestic material recycling, recovery and refining industries. I hope this endeavor can be part of our community's strong tradition of bipartisanship. One of today's bills introduced h.r.
▶ 0:24:363717, the legacy mine cleanup act of 2025 already enjoys bipartisan support, and we will continue to work with our colleagues on the other side of the aisle to hopefully reach bipartisan agreement on the three discussion drafts as well. So thank you for being here. I thank all of my colleagues on this committee for willingness to be open and work together for this absolutely critical part of our national security.
▶ 0:25:04Um, people, this is one of those issues. I always say that if people fully understood the the issue before us, I think the country would. One of these people ask me sometimes, what do you lose sleep over? It is not having adequate, uh, critical minerals in, in our area and, and within our country and within our, uh, our dependency on china. It's just something we absolutely have to solve in a bipartisan way. We will solve. So thank you. And I yield back. >> gentleman yields.
▶ 0:25:31The chair now recognizes the ranking member of the full committee, the gentleman from new jersey, Mr. pallone, for five minutes for an opening statement. >> thank you, Mr. chairman. Critical minerals are the building blocks of many modern technologies, from our cell phones to clean energy technologies like electric vehicles and solar panels. And as the world continues to shift towards clean energy to reduce costs, the demand for these minerals will continue to increase.
▶ 0:25:58And that's why it's vital that we work to bolster our domestic critical minerals supply chain. And as we do that, we must also focus on critical mineral recycling and recovery that increases resource efficiency, reduces the need to mine new materials or new minerals, and reduces waste. And this represents a true win win for our environment and for our economy. For too long, we've allowed valuable critical minerals to go to landfills, never to be recovered.
▶ 0:26:23And that has to change if we want to remain globally competitive, domestic recycling is still viable. Critical minerals also helps mitigate supply chain vulnerabilities. This is so important considering the us is dangerously dependent on foreign adversaries, namely china, for critical mineral refining, processing and even recycling, leaving our nation exposed to geopolitical supply chain risks. And that's why domestic recycling of critical minerals can also help boost national security.
▶ 0:26:52We know it's possible to shore up our critical materials supply chains without compromising environmental and public health protections. Democrats support the responsible and sustainable build out of our domestic critical materials supply chains. It's important for our economy and national security, and necessary for the transition to cleaner and cheaper energy, particularly at a time when the trump administration and congressional republicans have gone to war against clean energy.
▶ 0:27:20It's time republicans joined us in supporting clean energy rather than continually targeting it. And democrats secured important down payments in the bipartisan infrastructure law and the inflation reduction act. The bipartisan infrastructure law included 7.9 billion for battery materials processing, manufacturing and recycling.
▶ 0:27:38It also directed the epa to develop battery collection, best practices, voluntary battery labeling guidelines, and an extended producer responsibility framework for batteries to help grow our circular economy for critical minerals. The inflation reduction act included tax credits for electric vehicles, critical mineral minerals for batteries and battery manufacturing to expand our nation's capacity and boost supply chain resiliency.
▶ 0:28:05And while none of my republican colleagues supported these historic laws, I am encouraged by today's conversation to advance critical mineral recycling and recovery. The slate of bills span the breadth of critical minerals recovery, ranging from bipartisan ideas we can continue to work on together to some highly partizan ideas that republicans pushed under previous congress. To that end, the wholesale industry, deregulation in h.r.
▶ 0:28:353059 and the codification of troubling trump executive orders and h.r. 4370. Our bills I simply cannot support. On the other hand, h.r. 3713, the legacy mine cleanup act, which creates a dedicated epa program for cleaning up abandoned toxic mine mine sites, is a welcome bipartisan effort.
▶ 0:28:54We'll also consider three discussion drafts on battery recycling for critical minerals, a strategy for recovering critical minerals from discarded materials, and authorizing a program for reclaiming mining waste in search of critical minerals. And these discussions are not perfect, but I believe they're heading in a promising direction, and I look forward to continuing conversations with the republican majority to improve these discussion drafts so that we can secure bipartisan agreements.
▶ 0:29:23While critical mineral recycling and recovery is essential to bolstering our domestic supply chains, it's important that we do it responsibly and in a way that mitigates risks and protects the environment, public health and worker safety. And we have to recognize and build off of the tremendous progress already underway at the state and local level. So with that, Mr. chairman, I yield back the balance of my time. Thank you. >> gentleman yields. We have concluded with member opening statements.
▶ 0:29:52I would like to remind members that pursuant to the committee rules, all members opening statements will be made part of the record. We want to thank our witnesses for being here today and taking time to testify before the subcommittee. The witnesses will have the opportunity to give an opening statement, followed by a round of questions from members. Our witness witnesses for today are david clinic, president and ceo of service solutions.
▶ 0:30:17Grayson buckingham, co-founder, president and ceo, disa technologies. Doctor. Jessica dunn, scientist, clean transportation union of concerned scientists, and aaron h. Goldberg, principal beverage and diamond pc. We appreciate you all being here today. I now recognize Mr. glinsky for five minutes to give an opening statement.
▶ 0:30:42>> chairman palmer, vice chair crenshaw, ranking member tonko, and distinguished members of the committee, thank you very much for the opportunity to testify today. My name is david klonsky, president and ceo of service solutions, north america's premier battery recycling and materials management company. We were the first company in north america to process lithium ion batteries at commercial scale. And today we recover over 90% of the critical minerals in these batteries that we process.
▶ 0:31:08I'm here today because the committee has an extraordinary opportunity to take decisive action that will strengthen america's national security, reduce our dangerous dependance on china for critical minerals, and position the united states to lead the global energy economy. Let me offer a vivid perspective. Access to critical minerals is essential for our nation. The largest critical mineral mines operating today in america are not on the in the ground. They're actually operating on our roads and data centers and energy storage systems and our homes.
▶ 0:31:37Right now, all these batteries contain critical minerals that are recoverable. There's a remarkable opportunity for the united states to take control of our own destiny. But instead, we're allowing these materials to be sent to china. Battery manufacturers are sourcing critical minerals from different parts of the world, like chile, australia and argentina, to build those batteries in the united states, only to have these materials shipped back to china when those batteries reach end of life or become manufacturing scrap those critical minerals,
▶ 0:32:09Then become controlled by china. And in essence, we're subsidizing china's critical minerals supply chain. China controls an estimated 70 to 90% of the global critical mineral processing in the world, including materials that that power applications, energy for the grid much more, not an economical ability for national security. Battery recycling and recovery. >> one of the.
▶ 0:32:41>> cost effective ways to reduce the pathogenicity as we recover lithium, nickel, cobalt, and manganese from batteries and gigafactory scrap and make sure that we return them directly to the production of a new battery, enabling a closed loop battery supply chain, which we all need. One of the most pressing obstacles facing our industry today is the export of end of life batteries and gigafactory scrap out of the united states to overseas processors, primarily in china.
▶ 0:33:10Large volumes of lithium ion batteries and gigafactory scrap are being shipped abroad rather than processing here at home. And our own regulatory framework is allowing that to happen. The path of least resistance for these materials is to ship those materials abroad. It's more economical to countries with far less stringent regulations and state subsidized capacity like china, china has deliberately structured its industrial policy to attract exactly that material flow.
▶ 0:33:37And there are united states companies today actively shipping these critical minerals and the life batteries and gigafactory scrap to china. Meanwhile, domestic processors are operating under rigorous, rigorous environmental standards like rec or part b, as well as stringent capex and opex disadvantages, which result in increased costs to process these batteries. These are hurdles that foreign competitors are not burdened with.
▶ 0:34:05Every battery that leaves america is a compounding loss, not only just in the mineral value, but the jobs, the processing infrastructure, and the manufacturing feedstock that could supply us as local battery production, enhanced material tracking, targeted incentives for domestic recycling, and a level regulatory playing field for domestic recyclers can reverse this dynamic.
▶ 0:34:30Keeping critical minerals, jobs and processing capacity here in the united states. The second barrier is how the federal government classifies black mass. Black mass is a concentrated intermediate material produced when lithium ion batteries are shredded and processed at their end of life. It's rich in lithium, cobalt, nickel and manganese, and every buyer and seller in the marketplace. Black mass is a very valuable product.
▶ 0:34:57Actively purchased trade and sought by refiners and manufacturers worldwide. Yet under current U.S. regulations, it's classified as a solid waste. This creates a cascade of real world consequences, such as imposing compliance costs that make U.S. recyclers less competitive. When policy treats a product like a waste, it creates waste like economics instead of product economics that attract investment.
▶ 0:35:25We cannot afford to let this dynamic occur when we are trying to compete with china, who controls 80% of the black mass shredding capacity in the world. The brace act must exclude black mass from the definition of solid waste, and direct the epa to implement universal waste standards specifically tailored for lithium ion batteries that reflect the value of the critical minerals they contain. The practical benefits are significant.
▶ 0:35:52Easier domestic and transboundary movement, more competitive pricing and a lower cost mean all more capital available for infrastructure and domestic processing capacity. And this translates into a much stronger competitive position against china. It also sends a clear and necessary market signal that battery recycling intermediates, such as black mass, are a strategic product that we value. Let me be clear.
▶ 0:36:18We're not asking for anything to be exempt from environmental regulations or laws that are there. We simply want the regulation to reflect the nature and the value of the products that we create and tailored enforcement across the industry. The volume of lithium ion batteries reaching into life in gigafactory scrap being created will grow dramatically over the next decade. The countries and companies that build a robust recycling infrastructure today will now control the critical mineral supply chains of tomorrow.
▶ 0:36:47The ones that wait will find themselves dependent on whoever did invest in china has been and is investing aggressively at scale on recycling. A diversified domestic supply chain, one that draws recycled materials alongside a responsibly sourced primary material through mining, is the only long term resilient path for international competitiveness.
▶ 0:37:10Serbia solution proves every day that domestic battery recycling and critical mineral recovery at scale can be done and done commercially profitable. The critical minerals we need for our national security and economic competitiveness and for our energy future are already here. As I mentioned, they're out on the streets and in our pockets. Battery recycling is how we claim them for america. Thank you very much. I welcome your questions.
▶ 0:37:41>> chair. Now, recognize, Mr. buckingham for your opening statement. >> chairman palmer, ranking member tonko, chairman guthrie, ranking member pallone, and distinguished members of the subcommittee, thank you for the opportunity to testify today. My name is grayson buckingham. I am the co-founder, president and ceo of disa technologies, a veteran led critical minerals and remediation company headquartered in casper, wyoming.
▶ 0:38:08This has started with two wyoming entrepreneurs and a conviction nearly everyone else had written off. My business partner, john lee, and I met at the university of wyoming, two westerners raised with a deep appreciation for this land and the resources it holds, and a belief that we owe it to both to take care of them.
▶ 0:38:26In 2018, we founded disa on a simple conviction that america can meet its own energy and mineral needs and does not have to choose between cleaning up its land and putting it back to work. For the first two years, neither of us drew a salary. I served in the us army national guard throughout, with deployments to kuwait and iraq, and we took on a variety of jobs just to keep the business afloat. We kept going because we believed in the mission.
▶ 0:38:54Every ton of critical minerals and nuclear fuel we do not produce at home is a ton. We buy from foreign sources, including russia and china, and changing that is national security. Today, that conviction has earned disa the backing of some of the most respected names in energy and industry, including constellation, the largest U.S. nuclear power producer. Bhp, the world's largest mining company, as well as valor equity partners galvanize, evoke innovations, veridian and halliburton labs.
▶ 0:39:24We have raised more than $80 million in private capital, employ over 75 people, and hold the first and only us nuclear regulatory commission license ever issued to remediate and recycle abandoned uranium mine waste.
▶ 0:39:39Across the west, there are thousands of abandoned uranium mine sites, not mill tailings, but the uranium bearing waste rock and soil left behind by the federal government's own cold war weapons programs, most on federal land, many on tribal land and nearly all without a responsible party to fund the cleanup. And for the past 40 to 75 years, these waste rock piles have sat exposed on the surface, posing a hazard to public health and the environment.
▶ 0:40:08On the navajo nation alone, there are 523 abandoned uranium mines. An estimated 85% of homes on the navajo nation have been contaminated with uranium, and generations of families have faced elevated risk for cancer and kidney disease for decades. The only options were to do nothing, cap the material in place, or haul millions of tons of radioactive material away to disposal cells, each slow, costly and leaving both the hazard and the resource behind.
▶ 0:40:39We are joined here today by the navajo nation epa executive director stephen eddy and the navajo nation washington office deputy director duane crank partners we have been privileged to work with for the last several years, working with the navajo nation and other partners. Disa built a different option our technology, high pressure slurry ablation is a mechanical process that uses water and ♪particle and particle collisions to strip uranium, radium, and vanadium off the sand.
▶ 0:41:08And epa's own study on the navajo nation, it cut contamination by more than 90%, eliminated leachability, and shrink the waste needing disposal by up to 83% at 60 to 70% less cost than hauling and disposing the material. Epa and idaho national laboratory validated the technology, and the nrc licensed it just last year after a four year long process and a finding of no significant environmental impact.
▶ 0:41:37Our crews are trained radiation workers held to the same rigor used as superfund sites. Protecting the people. Land and water is the foundation of what we do. That same waste also holds the potential to recover hundreds of millions of pounds of domestic uranium, so we can clean up a legacy hazard and in the same step, recover a critical mineral our country desperately needs for national security and energy production. While the technology is ready, the regulatory framework has not kept pace.
▶ 0:42:07Federal law is built to treat and dispose. It does not reward recovering minerals while cleaning up the bills before you begin to fix that, and we especially support the legacy mine cleanup act, the charm act and the Mr. act. And we don't and we didn't start from scratch.
▶ 0:42:25Epa superfund optimization program already makes cleanups more effective and cheaper, and it should examine and prioritize proven recovery technologies like disa's for principles matter, most one recognize and where appropriate, credit the value of recovered minerals and cleanup decisions. Two give a technology proven at one site a streamlined path to the next.
▶ 0:42:51Three put one lead federal agency in charge of coordinating, permitting and four distinguished legitimate remediation, recovery and recycling from new mining. So cleanup is not treated like a new mine. We are not asking you to choose between cleanup and recovery. With the right framework, america can do both protect public health, restore the land and strengthen our mineral supply, all while saving taxpayers money. Thank you, and I look forward to your questions. >> I recognize, doctor done for your statement.
▶ 0:43:25>> chair palmer, ranking member tonko and members of the subcommittee, thank you for the opportunity to appear before you today to discuss how we can increase safe domestic critical mineral recovery. My name is jessica dunn and I'm a scientist at ucs. I use environmental engineering methods to assess the circularity of critical minerals and conduct research on electric vehicle battery recycling policy.
▶ 0:43:47My peer reviewed research, along with the work of scientists at universities and national labs, have demonstrated that recycled materials could meet up to 50% of future demand for lithium, cobalt, and nickel for electric vehicles in the U.S. by 2050.
▶ 0:44:04For that reason, I appreciate the subcommittee's focus on this topic and agree that it is important to assess how federal policy can help us recover the maximum amount of minerals from waste, and support our domestic economy. At the same time, it is important to ensure compliance with foundational environmental laws that are necessary to protect people and the resources we rely on.
▶ 0:44:26I urge this committee to consider approaches that build a robust recycling system, while upholding critical environmental protections. My work is informed by years of in-depth discussion with industry lawyers and other researchers. These conversations have made clear there are key areas where policy can improve the system without lowering necessary health and safety standards.
▶ 0:44:51The charm act takes a first step at this by coordinating recovery plans across the agencies, but much more can be done. The first issue is addressing to address increased increasing battery collection and ensuring they can reach recycling facilities safely. The dispersed nature of battery retirements across the nation leads to many instances where the cost of collection and recycling exceeds the revenue from recovery.
▶ 0:45:18This lowers battery collection and squeezes the recycling market. In colorado. This issue was addressed by a recently enacted law requiring the recycling and recovery of battery of critical minerals from batteries in hybrids and electric vehicles. The colorado legislation allows the collection and recycling market to continue operating, but holds the producer responsible for batteries that would typically fall through the cracks.
▶ 0:45:44The bill was supported by automakers and other affected stakeholders because they know they can create an efficient and lower cost battery collection network that will increase feedstock to recyclers and increase the critical mineral supply for future manufacturing needs. Additionally, we need to make sure minerals are actually recovered from these batteries when they reach a recycling facility.
▶ 0:46:07Currently, minerals are covered at rates below the technologically available level due to low and fluctuating mineral market prices and outdated technology. By setting minimum recovery rates as done in the european union and colorado, more minerals will be recovered and added to U.S. production. This can also be achieved by setting minimum thresholds for recycled content in new products.
▶ 0:46:32Lastly, there is a lack of ability to determine the battery's health when it reaches retirement and is removed from a product. This is especially true for electric and hybrid vehicles. This prevents third parties from truly knowing if the battery is damaged or can be sent for repurposing, requiring the sharing of this information would make shipping safer and the battery end of life more profitable and efficient.
▶ 0:47:00Unfortunately, the deregulation approaches in the act would make matters worse by introducing dangerous changes to the management of retired batteries, this draft legislation would undermine current laws covering transportation and storage. For example, excluding black mass from being considered solid waste removes the environmental oversight necessary to control heavy metals and other contaminants, exempting recyclers from the requirement to be fully permitted under rcra to allow them to store batteries for longer will
▶ 0:47:31Remove important guardrails and mitigate risk. These guardrails include fire and spill controls, storage and disposal standards, air emission standards and public notice requirements. Enacting policies to increase critical mineral recovery, while also upholding key environmental regulations is of national importance. These recovered minerals are a domestic replacement for those that are newly mined and result in significantly less environmental impact.
▶ 0:47:56There are valuable steps congress could take to achieve these goals without the dangerous backsliding in the act that creates health and safety risks. Thank you for the opportunity to testify, and I'd be pleased to answer any questions you may have. >> Mr. goldberg, you are now recognized. >> chairman palmer, ranking member tonko and members of the subcommittee. Thank you for this opportunity to speak today. My name is aaron goldberg.
▶ 0:48:26I'm an environmental attorney with beverage and diamond, and I've been working on hazardous waste issues under the resource conservation and recovery act since 1980. I'm here today in my personal capacity to highlight the need for legislation to promote recovery of critical minerals from the lithium ion batteries used in consumer electronics, electric vehicles and energy storage systems. The views I expressed today are my own.
▶ 0:48:54To start, it's important to note that virtually all the relevant regulations were issued in the 1980s and 1990s, before lithium ion batteries were widely used. The rules contained numerous provisions designed to facilitate recycling of other types of batteries, such as lead acid and nickel cadmium. However, the rules are essentially silent on lithium ion batteries.
▶ 0:49:20As a result, they create obstacles that were never intended and that frustrate national goals. The fundamental problem is that the rules generally classify lithium ion batteries and related materials as wastes, rather than the valuable resources that they are. That, in turn results in a cascade of other problems. I'll highlight three examples.
▶ 0:49:46First, the rules compel battery recyclers to store and restore the batteries off site prior to processing. That serves no environmental purpose. It merely adds costs, complicates logistics and increases transport and handling risks.
▶ 0:50:07Second, the rules classify critical mineral rich black mass from shredding lithium ion batteries as solid waste, even though lower value shredded circuit boards are generally viewed as non waste. That makes recovery domestic recovery harder, and it puts the us at a disadvantage to countries like china, which generally views black mass as valuable commodity.
▶ 0:50:32Third, the rules restrict land disposal of non-hazardous residues from recycling lithium ion batteries, even though similar residues from recycling other batteries are not subject to the same type of restrictions. That imposes extra burdens without a corresponding environmental benefit.
▶ 0:50:53Epa has announced its intent to revise some of the rules for lithium ion batteries, but the focus appears to be more on on more stringent standards to address fire risks. Not any of the issues that I've mentioned. Fire risks are real, but they are already addressed through fire codes, dot transportation rules and other targeted requirements.
▶ 0:51:17Moreover, epa's authority to add new standards to address these risks is uncertain. Under the 1996 rechargeable battery management act, and even if epa does act, a rulemaking would likely take years and would have to be followed by state adoption. That could take several more years and might never be complete. For these. For these reasons, congressional action is important.
▶ 0:51:46I appreciate the subcommittee's work on the on the draft brace act. The bill is a useful start, but it needs important revisions. First, it addresses only the rule that pushes recyclers to store batteries off site, and it does so in a way that, paradoxically, could leave on site storage less regulated than off site storage.
▶ 0:52:10Second, it does not address other barriers that I've discussed, including the regulation of black mass and non-hazardous recycling residues. Third, it would give epa broad authority to issue new standards without requiring the agency to account for existing safety standards or the national goals for recovery of critical minerals. There are simple common sense solutions.
▶ 0:52:38For example, recyclers could be allowed to store batteries on site as long as they comply with the same requirements they are currently subject to at their separate facilities. Black mass like other partially reclaimed materials that are commodity like, could be reclassified as non waste and non-hazardous residues from recycling lithium ion batteries, like those from other types of batteries, could be deemed to be sufficiently treated to
▶ 0:53:09Allow land disposal. I urge congress to enact these and related changes nationwide to help support the domestic supply chain for critical minerals, while continuing to protect human health and the environment. Thank you for considering my testimony. I'm happy to answer any questions. >> thank you all for your testimony. We will now move to the question and answer portion of the hearing. And the chair now recognizes the gentleman from ohio, Mr. ladder, for five minutes for his questions. >> thank you very much, Mr.
▶ 0:53:39Chairman, for today's hearing. And thanks to our witnesses for appearing today. Mr. buckingham, you noted in your written testimony there's a lack of incentives for recovery of valuable materials during the remediation of contaminated sites. And I've been to several contaminated sites. And usually what you see is they come in, they move all the dirt out. It's, you know, taken to some other hazardous waste area. It might be put into a pit or some kind of a lined area and forgotten forever.
▶ 0:54:08Forgotten forever. Then on that end, but how should the epa address and incentivize some kind of a process that we can go in and make sure that we're recovering these really critical minerals that's in that soil? >> thank you, representative, for the question. Uh, the us, epa, for the purposes of uranium estimates, there's about 15,000 sites associated with abandoned uranium mine waste.
▶ 0:54:36Those sites have largely just been sitting on the surface for decades. And without any meaningful, um, incentives to remediate those sites because it's too costly. Um, you know, on average, the us epa estimates there's about 3 billion tons of overburden material that's been sitting on the surface. Uh, and so when the epa approaches these different types of cleanups, specifically on the navajo nation, uh, they have to formulate what's called an engineering evaluation cost analysis report.
▶ 0:55:01And they list out the various options and how to address the cleanup of that particular site. And almost always option one, which sounds silly, is do nothing. Uh, because it's too expensive. Um, you know, the predominant option historically has been to bury the material on site, which takes no benefit of the resource and keeps those contaminants at that site and those caps, you know, over time do erode and that material can still leach into the water and pose an environmental hazard.
▶ 0:55:30And so, you know, a technology like ours where we can come in, we can treat that material, uh, we effectively recover over 90% of the uranium and vanadium and to just 20% of the original mass. So we upgrade it to where, you know, in some cases, it's economic to take that material and recycle it and put it to productive use, convert it to u308 and enter the nuclear fuel cycle.
▶ 0:55:50But when the us, epa did the treatability study, um, based on the current regulatory framework, you know, they just looked at us compared to hauling off site, which we were still 60 to 70% more economic and then capping that material in place, but there was no consideration given to the value of those minerals. And so the economics are a major driver in determining which options to pursue.
▶ 0:56:10And so if the us epa had that framework, uh, where they were able to value the minerals that could be recovered, uh, that would drastically change the economics and how they approach cleanup decisions. >> let me ask, let me follow up with that because again, one of the great things about serving on this committee, you know, we're looking out over this dais to a lot, so many innovators and entrepreneurs that come in here with so many great ideas.
▶ 0:56:35And what you brought up, again, is on the regulatory side. And so if it gets put in the regulation, you know, I think you touched on this, it's on the economics issue, but what are they talking to the folks out there that are coming up with a new process and new ideas saying, hey, we can do this? Or is it just always kind of like, no, it's much easier just to say that we're going to bury it. >> yes.
▶ 0:57:03And it's been a long journey of perseverance on our end, you know, especially overcoming the, you know, valley of death is what they call, you know, a lot of technologies when you're trying to commercialize that. Um, and, you know, we're, we're extremely grateful. And I think, you know, the, uh, you know, strongly helps advance this, for example, but we did our treatability study in the navajo nation in 2022. Uh, you know, they looked at how effective economic, um, and could we use the technology in a wide variety of sites? And we answered yes to all of those questions.
▶ 0:57:32But, you know, with the current regulatory framework, it just kind of gets put on a shelf. Um, and, you know, fortunately with, uh, because there wasn't a funding mechanism to take it to the next step. And, you know, fortunately, with the leadership of the navajo nation, um, you know, they said, we want to see this verified at commercial scale. You did a great job on the pilot scale, but we want to see this commercially validated. But there were appropriate mechanisms, you know, within the epa regulatory framework to do that.
▶ 0:57:55So the navajo nation, using its own funds is, um, is funding a phase two verification study where we'll be doing the first deployment of our technology for a cleanup this year on the navajo nation. And so, you know, but it does come down to economics, uh, you know, to your point representative and, you know, given that the current regulatory framework that does not incentivize the value of recovered minerals, it's extremely difficult for new innovative technologies, uh, to even come on board, to validate,
▶ 0:58:26To validate, to reiterate the technology and prove that at commercial scale. And so, you know, with those incentives aligned, I do believe that it will encourage, uh, a much more significant amount of innovation to take place in this space. And I love the, the title of this, um, hearing from trash to treasure. I mean, that's, that's been our slogan, you know, converting liabilities into assets, uh, since we founded the company. And, and I do believe there's massive opportunities that are sitting in these waste piles. >> well, thank you very much. And my time has expired, Mr. chairman.
▶ 0:58:55I submit my other questions to the witnesses in writing. Thank you very much. Thank you. >> gentlemen. Yields chair now recognizes the ranking member, Mr. tonko, from new york, for five minutes for his questions. >> thank you, Mr. chair. I reiterate that I am open to examining potential barriers that are hindering the responsible recovery of critical minerals. But I also believe we would benefit from an overarching end of life management program to require the collection, assessing and recycling of large formal batteries.
▶ 0:59:25So, doctor dunn, what do you think we can take as a next step to really improve the circularity of our critical minerals supply chains? And are there state level policies that congress can learn from? >> thank you, Mr. tonko. Um, that is a great question. Yes, there are, um, extended producer responsibility, as I mentioned before, is a program that really requires the recycling of these products by the producer.
▶ 0:59:52So ensuring that they make it to the recycling facility no matter the cost. In addition, the, um, ensuring that the minerals are actually recovered once they get to that facility is essential for building up our domestic, um, feedstock of critical minerals. There are also additional measures that can be taken, such as recycled content standards.
▶ 1:00:15So requiring the, the, um, the production of batteries using uh, recovered materials and therefore kind of, uh, building up that end of life market. In addition, um, there is labeling standards, which really help increase the efficiency of the end of life market. So by telling the recyclers actually what is in that battery and those minerals and that worth, these are all policies that were enacted in colorado, uh, this year.
▶ 1:00:44And, um, they are also policies that are in the european union since 2023. >> thank you. And why is this trend toward state level extended producer responsibility? Uh, as a program so promising. >> this is extremely promising because, um, it is a answering a question that a lot of people have of what are we going?
▶ 1:01:07Um, to, to do with these big batteries and how can we get the, the, um, minerals out of them? It's something that is supported by industry within the markets, not only environmental orgs. Um, so the dismantlers, the folks that are taking the batteries out of the cars and realize that they need help along with the automakers who recognize that it is in their best interest to recycle the batteries, because this will create a more resilient, low impact and domestic supply.
▶ 1:01:39Um thank you. >> okay. Uh, if there are requirements that battery producers support the recycling of their products that result in batteries, uh, becoming designed and manufactured to be more recyclable. >> yes, that is an extremely good point. I'm holding the producer responsible for recycling ensures that they are incorporating the cost of recycling. So that means the disassembly, um, the shredding, the black mass processing into the design of their batteries.
▶ 1:02:11This is important because the dismantling of the batteries is costly. All of the batteries from different cars to different manufacturers are designed differently and take apart manually. And. And, uh, you know, um, uh. >> situation in. Disassembled into recycled, it will increase. Efficiency and decrease costs. >> thank you. And Mr.
▶ 1:02:39Klonsky, how might a national product stewardship program that requires producers to be responsible for end of life management and ensures the safe recycling, repurposing or disposal of large formal batteries be beneficial to our shared goals of promoting critical mineral recovery. >> thank you. Representative. I appreciate the question. Yeah, that's that's the overarching goal, right?
▶ 1:03:02Is, is we have these programs, so we keep the critical minerals in the united states, and the extended producer responsibility programs enable that. They enable the collection of batteries. They they enable that there's a certain supply chain that's set up to ensure that those batteries, when they reach end of life, do, do get recovered. And I think that helps recyclers. It helps the industry. It also creates a framework where we know where these batteries are going to end up. They're not going to be ending up back in china, for example.
▶ 1:03:30So I think one of the important things is just working with the states. Every state is kind of proposing different rules, but working with the states to ensure there's some consistency and how these rules are enforced, as well as the fact that the entire supply chain needs to needs to be profitable when they do these things right. Miss, miss dunn mentioned a few things about the economics. I think that's important as well with these with these programs that the the they are set up to ensure that not one part of the supply chain actually profits from everything.
▶ 1:03:56And the other part, other parts of supply chain aren't able to to build a business beyond that. But I think it definitely in the end of the day, it reaches the overarching goal, which is keep the minerals here in the united states. >> well, thank you very much. I have exhausted my time, but I had another question that I'll get to the committee. But again, I thank the panel for their attendance today. Thank you gentlemen. >> yields back. Chair now recognizes the chair of the committee, Mr. guthrie, for his five minutes. >> thank you, Mr. chairman, for the recognition. I appreciate you all being here.
▶ 1:04:23And I said this is critically important, and it absolutely makes sense that we can take products that are going to be discarded and reclaim them and put them back in the stream of commerce, instead of putting them in the earth to be buried for some future generations to discover, we need to use them now. Um, so I'm going to ask Mr. goldberg a series of questions, and then Mr. kalinski, after I get through, if you'll comment on some of the comments, I'd appreciate it. So, Mr.
▶ 1:04:49Goldberg, in your written testimony, you note that the current rcra regulations make domestic recovery of valuable materials from lithium ion or batteries more difficult, and puts us at a disadvantage to countries like china, where the black mass. The results from shredding lithium ion batteries is treated as a valuable commodity.
▶ 1:05:08So my question is, how does epa go about deciding which materials should be considered solid waste and therefore potentially hazardous waste, in which should be exempted or excluded from definition of solid waste by its regulations? Did you get all that? >> uh, I believe so. Thank you very much for the question. Um. >> and then could increase coordination, uh, communication between epa and federal agencies help deal with this. That's if you kind of throw that in as well. Okay, okay.
▶ 1:05:38There you go. >> alright. Um, epa's definition of solid waste is very complicated. Uh, it's, um, it's based on, uh, largely on the nature of the material that's being processed as well as the, um, the manner in which it's going to be, uh, managed in this case, recycled and, uh, with black mass in particular, since you were asking about that, um, generally if it's black mass from a used product, it would be viewed as a spent material, uh, that is partially
▶ 1:06:10Reclaimed. This is under epa's regulations. And therefore it would still be viewed as a waste, um, by epa. Uh, it would also then potentially be hazardous, uh, depending upon the composition of the black mass. Um, and, um. >> so communication between epa, if they communicated with other agencies, would that be helpful in trying to get to the bottom line of this? >> I think, I think that that might, might be helpful.
▶ 1:06:37Uh, you mentioned in particular china, china takes the position that black mass is not a solid waste if it meets certain standards. Uh, and that creates a, as I indicated, a disadvantage to the us because, uh, you know, because they're viewing it as a non waste that they can take in freely. Uh, whereas in the us it would be, uh. >> so, so how could a regulatory approach that treats black mass recover from lithium ion or batteries as a valuable commodity, encourage the growth of domestic battery recycling?
▶ 1:07:09>> if black mass is viewed as a non waste, then it can move without all the restrictions of the regulations. It can also then be processed without, uh, compliance with those regulations. They would still be subject to other regulatory regimes like the clean air act and the clean water act. Uh, but, uh, the, the stringent hazardous waste rules would not apply. Um, you know, as would be the case, uh, you know, for, for other kinds of, uh, of materials. >> so Mr.
▶ 1:07:37Klonsky, if we treated, uh, the black mass recovered from lithium ion batteries as a valuable commodity, well, how does that encourage the growth or any other comments of you'd like to make on this subject? >> yeah. No, appreciate. Thank you, representative, for the question. I you know, I think when you look at black mass as a waste, I mentioned in my testimony it, you know, waste when you're classifying something as waste. It has waste economics as well that come along with it and that there's certain burdens and restrictions that, that, that carry >> that definition.
▶ 1:08:04If you classify it as a product, which it is an intermediate product, it contains valuable critical minerals that attracts different investment. It's a it's a material that can be used further downstream in the in the entire process of the supply chain. So there's other industries that have intermediates that aren't, aren't called waste as well. When you're, when you're recycling plastics or other types of devices as well, they're not considered as a, as a solid waste or considered as an intermediate product, which is what black mass is. >> okay. Thanks also to Mr. buckingham. So what type of contaminated sites are good candidates for recovery of critical minerals?
▶ 1:08:34And when epa identifies contaminated sites for remediation, how does it coordinate with other local other other federal agencies? >> yes. Thank you, chairman guthrie. Uh, we're primarily focused on abandoned uranium mine waste, uh, where, you know, you'll typically find large amounts of uranium and vanadium and radium, uh, located in those sites. But in addition, the technology can also be used for tailings recovery.
▶ 1:08:56So we've got strong partnerships with a group called element usa, as well as regeneration that are focused on reprocessing tailings. Um, so looking at copper gold, um, primarily in those applications, uh, with respect to the abandoned uranium mine situation, um, it is, there are a lot of agencies that we have to deal with. >> I only have a few. It's a process sufficient now, or do we need to update the process between agencies? >> I would for superfund sites and epa led.
▶ 1:09:24We would uh, you know, I think the legacy mine cleanup act does is a very strong step in in helping a lead agency with the office of mountains, plains and deserts, uh, streamline coordination. >> thank you. Well, my time has expired, and I will yield back what I don't time I don't have. >> uh, thank you for the time. You don't have, Mr. chairman. The gentleman now from new jersey recognized for five minutes. >> thank you, Mr. chairman.
▶ 1:09:47I want to focus on the proposals we can work together on to ensure that we create a sustainable, reliable and domestic supply of critical minerals. But while at the same time maintaining critical environmental standards. So along those lines, the brace act tackles battery recycling and offers a critical opportunity to reclaim critical minerals from discarded lithium ion batteries. And so, doctor dunn, my question I have two questions.
▶ 1:10:14This is the first one that both of you, uh, would you please briefly explain how we currently recycle critical mineral resources found in batteries, despite them being considered solid waste? >> yes. Thank you for the question. Uh, currently, batteries are first taken out of the product they're already in.
▶ 1:10:34So if it's an ev, uh, dismantled, uh, from that ev, um, shipped to a recycler at that point, it's further broken down to, um, from the pack to the modular cell level. And then it is shredded or crushed. Um, that is a very harsh process. It's exactly what you think breaking that battery up into tiny pieces. Um, at that, I mean, there's very, you can do that, uh, in an inert environment. You can do it in, um, a salt water essentially.
▶ 1:11:05Uh, from there, the black mass is, um, attempted to be separated from the rest of the battery. This can be, uh, through sifting or, um, magnets. And then at that point, um, that material is sometimes, um, heated. Uh, not always. Then it goes to a hydrometallurgy facility where the constituent materials are removed. >> all right, I appreciate it.
▶ 1:11:32And of course, my view is that we don't need to exempt the so-called black mass from from solid waste protections to recycle batteries, because, as you said already, examples of recyclers managing the solid waste designation appropriately while successfully moving forward with recycling batteries. So, um, I think it's clear that battery recyclers are already doing this work without a, without that need for that exemption.
▶ 1:11:57But moving on to safety, my second question is the epa started a rulemaking process to establish universal waste standards specifically tailored to lithium ion batteries, to address potential fire risks. And epa made this announcement in response to a 2021 report on lithium ion battery fires in the waste management process. Yet some suggest that an updated standard to address fire safety risks in batteries.
▶ 1:12:29Are. I think that we do need to, uh, um, darren soto doctor done the brace act also directs epa to revise its universal history lessons to establish standards. Please explain why it's. Essential tool making to reduce fire risk and improve safety standards associated with the end of life treatment of lithium ion batteries, if you would. >> yes. Thank you for the question.
▶ 1:12:57I agree that it's essential to consider fire when, uh, fire risk when we are handling these batteries. Um, one, uh, battery that has a thermal runaway. So it heats up and creates a fire. Um, can you know when these are being shipped? There are a lot of batteries on the truck and the fire in one will spread to the other fires to the other batteries. Um, and that is, that is a huge risk and something that can be mitigated and should be mitigated.
▶ 1:13:24Um, and is essential to address in any kind of um, transportation standard. Additionally, um, there's fire risk with black mass if there's lithium or um, or battery fragments in that. Um, so ensuring that fire, uh, risk is included in the transporting, handling and storing of these batteries is essential.
▶ 1:13:48>> well, I appreciate and again, I think that the, these batteries or lithium ion batteries that are handled are transported or disposed of improperly can pose significant safety risks. So that's why I think it's vital for any updated universal standard to adequately address these risks, because battery safety is integral to whatever safe and sustainable recycling of these critical minerals that we seek. So thank you again. And Mr. chairman, I yield back. >> gentleman yields back.
▶ 1:14:16The chair recognizes himself for five minutes. Mr. Mr. buckingham, I'm going to come to you. Thanks for being here today. By the way, uh, your testimony briefly touched on the geopolitical landscape and the favorable advantage china currently has in the global production and refining of critical minerals. While I'm encouraged by the ongoing conversations and the efforts of the department of energy and the epa and the environmental protection agency, rather to reduce our reliance on critical minerals from foreign countries.
▶ 1:14:46Can you speak to how environmental monitoring and remediation technology assessment initiative, emirati, so to speak? The program would allow us to identify new or nontraditional sources of critical minerals and drive technological innovation, allowing us to further secure our domestic critical minerals supply chain. Can you speak to that? >> yes. Thank you, representative. And, uh, I think is a great first step and incentivizing, um, how to recover these critical minerals.
▶ 1:15:17Um, you know, in turn that trash into treasure. Idaho national labs put out an amazing report a few months ago, uh, discussing the untapped resource we have in all these different tailings facilities. And, you know, speaking to our own personal experience, you know, the state of wyoming had an investment through the wyoming energy authority for a half million dollars that brought in $55 million in private capital within six months. So it's a signal to the private sector as well.
▶ 1:15:40Um, you know, these types of policies that this is a major focus of the us government and that there is potential in recovering significant minerals. You know, when we started the company in 2018, no one was using the word critical minerals. There weren't a lot of startups in our space. And just, you know, the focus that the us government has put on, on recovering these critical minerals. There are a significant amount of new entrants and capital flowing to this. And I believe in the american spirit. And through innovation, we can win this race. Uh, we are far behind.
▶ 1:16:08Um, but but you know what this committee is doing, um, as well as other efforts, um, you know, is a very strong step. And I think we're starting to see, you know, fast acceleration in this space. >> so you saw an opportunity that was going to be good for the country. You jumped on it. >> yes we did. You know, we're passionate about restoring lands and recovering critical minerals. We have 75 employees. We have 30 job openings right now.
▶ 1:16:33And every single day those employees come to work passionate about restoring our lands and recovering critical minerals for national security. >> all right. Well, thank you for that, Mr. goldberg. I'm going to come to you. Your testimony demonstrates the importance of creating uniformity in regulating the collection and recycling of lithium ion batteries. However, you briefly touched on a potentially problematic opposed a proposed epa rule that seeks to address the fire risk of these batteries.
▶ 1:16:57Can you describe what legitimate oversight the epa has on addressing fire risks with respect to the transportation and collection of those batteries? >> uh, thank you for your question. Um, epa has, uh, legitimate authority over, uh, fire risks. Uh, on the other hand, uh, there are a large number of other regulatory regimes that already address fire risks.
▶ 1:17:25And, uh, I question, uh, whether epa, there's really a need for further epa action here. Uh, there are currently fire codes, uh, that address these that are developed through the national fire protection association. Uh, there's dot transportation rules and a number of other rules under, uh, other programs as well.
▶ 1:17:49I also have some concern that, uh, if epa, uh, you know, epa rules here may not be desirable for certain reasons. For example, if you have a facility that is taking in batteries, both lithium ion batteries and other types of batteries, are they now going to have to, to, to comply with two separate standards? Um, also there's development of, uh, of solid state lithium ion batteries that do not pose fire risks.
▶ 1:18:18So if we have rules that are specific to lithium ion batteries in general, or the, the non, the batteries, the solid state batteries that don't pose fire risks, are those also going to be subject to the same standards. So I think there are a lot of issues that I think that, uh, if epa were to do anything in this case in this area, they need to, uh, you know, make sure that they're taking into account the existing rules that apply to fire risks.
▶ 1:18:44Uh, they, they take into account new developments of new battery chemistries. And they also take into account the, uh, the national goals of recovering of, uh, of, of the critical minerals from lithium ion batteries. >> well, you're reading my mind. My next question was going to be, you know, how would that, uh, proposed rule mess up the entire facility? And how would we work through that? I think you just outlined that. Thank you for your answer, I appreciate it.
▶ 1:19:11Jerry's going to now recognize the gentleman from massachusetts for five minutes. Or is it the doctor from california? All right. I thought you were from massachusetts. Doctor. Chairman, the gentleman is recognized. >> you should know better. You know that. You know that. Uh, thank you, Mr. chairman. Uh, as a physician who has cared for patients across the coachella valley, uh, for decades.
▶ 1:19:31I've seen firsthand how environmental conditions affect the health and quality of life of the communities that I serve, and why economic opportunity and public health must go hand in hand. Uh, my district is home to lithium valley and located in the salton sea region that sits atop one of the largest known lithium deposits in the world. I can see many of you have heard of it already.
▶ 1:20:01I have said many times in this room, including at our last hearing on critical minerals supply chains, that we have an extraordinary opportunity right under our feet. The brine beneath the salton sea alone, the salton sea region, uh, could help strengthen our national security, anchor, a domestic battery supply chain, and create good paying jobs in a region that has waited generations for economic investment and opportunities.
▶ 1:20:30But I've also said that every single time that this opportunity cannot come at the expense of the people who already live there. My district has some of the worst air quality in the whole country. Communities surrounding the salton sea continues to face significant public health challenges, including elevated rates of asthma and respiratory illnesses.
▶ 1:20:53Children in north shore, for example, and across imperial county, are seeing emergency room visits for asthma nosebleeds at rates that should alarm all of us. That is why when we talk about unleashing domestic critical mineral productions, I want us to be honest that energy security and environmental and public health protections are not competing goals. In fact, I would argue they are inseparable.
▶ 1:21:17If we fail to protect the health of the communities hosting these projects, then we have not truly achieved energy security. We have simply shifted the cost onto the people least equipped to bear them. Doctor dunn, would you agree that critical mineral development projects should leave host communities better off than they were before the projects arrived?
▶ 1:21:46>> yes, sir, I agree, we need to consider both the public impacts to health and our environment, as well as the recovery of these minerals. >> do you also agree that they are not competing interests? That we can actually create a win win solution where we have energy development, renewable critical mineral, mineral development, uh, while at the same time protecting and advancing the public's health.
▶ 1:22:12>> I do, there are roots of, um, complying with the regulation and protecting the environment and also boosting the recycling system in the us. >> thank you. And how can congress ensure that efforts to streamline development do not come at the expense of transparency, accountability, accountability, or public health protections. >> upholding these bedrock environmental policies and regulations that we already have is is critical.
▶ 1:22:38>> so no fast tracking, uh, nepa or in california sequa or, or taking shortcuts that, uh, that allow for some of the, uh, contaminations to occur. Okay. >> no, sir. Yeah. >> uh, and would you agree that one of the greatest opportunities for domestic critical mineral development is demonstrating that economic growth and environmental stewardship can coexist?
▶ 1:23:09>> yes. And I, I think the policies that we've enacted in colorado recently with epr and recovery rates show that we can do both hand in hand while complying with regulations. >> okay. I mean, I want to make it very clear that we need our critical minerals and we need to have a domestic supply chain of critical minerals.
▶ 1:23:27I am a big proponent of making sure that the lithium valley, uh, gives america the boost, its need for our national security to lower costs on technology, to create manufacturing, the batteries that we need. We absolutely need it. And the people in my district need the job opportunities. Uh, and we can do both.
▶ 1:23:49We can invest in a community, we can protect their public health, and we can create a full regional supply chain, manufacturing and recycling. You mentioned recycling, doctor dunn as a way to be good environmental stewards. I agree with that. We don't have a robust battery manufacturing industry, uh, in our nation. But oftentimes in history, the batteries are discarded near poor communities.
▶ 1:24:19We have environmental injustices happening like that where companies will take advantage of marginal poor communities. That has happened in our nation and in my district multiple times. Tell me how that is a priority in our public health efforts to avoid that from happening again.
▶ 1:24:38>> yes, it is essential that the recycling of these batteries doesn't lead to increased public harms, and that's something we've seen in environmental justice committees, specifically in california with lead acid batteries. >> thank you. I yield back my time. >> gentleman yields chair now recognizes the gentleman from pennsylvania, doctor john joyce, for five minutes for his questions. >> thank you. >> chairman palmer. And thank you for holding this important hearing for our panel, for being with us this morning to testify.
▶ 1:25:06The legislation under consideration today represents another step forward in this committee's ongoing efforts to improve america's domestic critical mineral supply chain while we work to onshore and scale up domestic mining and processing of these materials. Legislation like this will help in our efforts to recover the materials that would otherwise be discarded.
▶ 1:25:32With the equipment used for advanced manufacturing and precision agriculture both very important. In pennsylvania's 13th congressional district, we will continue to see more waste generated that contains valuable critical materials. We need to develop both a strategy and the capacity to recover these materials, rather than sending the waste for processing to china, who continues to dominate the supply chain.
▶ 1:25:59This is an economic and a national security imperative. We cannot afford to allow china to dictate the future of the global economy. These bills will improve our ability to recover our own critical materials and to help america back in control of these essential supply chains. Mr.
▶ 1:26:23Buckingham, how will treating certain supply waste as an opportunity for recovering value, rather than simple material, to be remediated and disposed of? How will that help to strengthen our critical mineral supply? >> thank you, representative, for the question. I think you know, and that's what guides us here at disa. I think we can make a tremendous impact in strengthening our critical minerals supply chains by recovering minerals from these waste streams. And that's what guides us.
▶ 1:26:50You know, looking at uranium, for example, we import 97% of our uranium. We have an abundant and untapped resource sitting in these legacy sites that we can put to productive use. Um, you know, in idaho national labs put out a great report several months ago on this very topic. And, you know, when we look to bring on new mines, for example, that can take 10 to 15 years. Well, in these tailings and waste piles, it's already there. You don't you don't need to mine it. You can quickly go and treat that material in a safe and sustainable manner and bring online, you know, tremendous amount of critical minerals.
▶ 1:27:21>> in follow up. Mr. buckingham, would you agree that directing epa to develop a critical national mineral recovery strategy and coordinate federal efforts, as outlined in the charm act draft, will help identify regulations that might need to be revised in order to allow and incentivize critical mineral recovery? >> yes, representative, I think that is imperative. >> thank you. Mr.
▶ 1:27:45Kennecki, in your testimony, you mentioned that the path of least resistance is to send waste abroad for processing rather than to attempt to navigate the regulatory framework right here in the united states. How does this reality impact domestic processors? >> yeah, I mean, that's why I mentioned some of the regulations create challenges for for local producers, domestic producers, because the, the domestic or sorry, the foreign producers don't have those rules. They don't have regulations. They don't have.
▶ 1:28:15>> so it's not a level playing field. It's what you're telling. >> us exactly 100%. >> how will the brace act improve your ability to receive, to store and process lithium ion batteries? And how will that, in turn, incentivize keeping the recovered critical minerals within our domestic supply chain? >> it'll provide clarity on what those rules and regulations are and then provide enforcement of those rules.
▶ 1:28:38I think that's the biggest thing, is to level the playing field and ensure that the regulations that we all kind of operate under today, we have a record part b permit in our site and we operate under that permit, but everybody else doesn't. And this will help people enforce the rules. >> well, that clarity allow you to increase production, which you and I know is so important. >> absolutely, absolutely. That clarity allows us to get investment ability to do that.
▶ 1:29:01>> the legislation that's under consideration today represents how seriously this committee is working toward the goal of a more robust domestic critical material supply, and for both the state of our economic and our national security. As I stated earlier, I look forward to continue to work with this committee to move these bills forward. Thank you, Mr. chairman, and I yield the remaining time back to the committee. Thank you. >> gentleman yields chair. Now, recognize the gentleman from california, Mr.
▶ 1:29:31Peters, for five minutes for his questions. >> thank you, Mr. chairman. Thanks to the witnesses, we do need to shore up our critical supply mineral supply chains. Uh, america faces mounting pressure to modernize our grid, to compete with china and ai, biotech and manufacturing and barriers like our outdated permit system, uncertain tariff policies and stagnating scientific research are holding us back. And first, we need to pass meaningful permit reform to make it easier and faster to source raw materials and recycled inputs.
▶ 1:30:01I also want to mention to the chairman, this has been a concern of chairman palmer's. Uh, he has proposed some clean air amendment, uh, clean air amendments, uh, for permitting reform. Uh, as I promised him. We've spoken to the industry. I think we have language that the industry would be satisfied with and that democrats could support. Uh, chairman guthrie also urged me to do that and look forward to working on continuing to work on that. I didn't want to let that go by.
▶ 1:30:27Uh, since we're here talking about critical critical minerals a second, we need to be more thoughtful with our tariff policy. We can shore up domestic supply chains, but the us doesn't have access to all the minerals we need. And in those cases, we should be smart about working with our global allies rather than imposing broad, sweeping tariffs that ultimately raise prices for consumers and create bad blood.
▶ 1:30:46Third, we should be fostering innovation where permitting reform and friend shoring still leaves gaps in our supply chain, we need to turn to novel solutions to fill the void, and recent innovations should change how we view critical mineral supply chains. And as we've heard this morning, there are companies that can pull critical minerals from the tailings piles and ponds left behind in former industrial and mine sites and turn wasted, sometimes hazardous materials into valuable products. We should be proactive, and we should incentivize the development of innovations like these.
▶ 1:31:17Meanwhile, we're still debating funding cuts that would be harder to make it harder to develop the solutions we we have been discussing this week, we'll consider the energy and water appropriations bill for the 2027 fiscal year. The bill proposes a 40% cut to the department of energy's office of critical minerals and energy innovation program. That goes beyond all the cuts we've seen at the national science foundation. This basic scientific research is fundamental to developing innovative solutions to problems like the supply chain issues we currently face. Mr.
▶ 1:31:48Buckingham, your company is the first of its kind to get a license to remove and recover uranium and other critical minerals from mining waste. Can you talk about how investments in technological innovations like yours can help us get the edge in our fight for critical minerals access? >> yes. Thank you for the question, representative. And, you know, it was, uh, you know, quite the journey with the nrc because we were being regulated under the 1954 atomic energy act, and they didn't foresee a technology coming like ours. And so, you know, that took a lot of education.
▶ 1:32:16Um, senator lummis and senator kelly were paramount in helping the advocacy for, um, you know, the commission addressing this issue, which ultimately resulted in a unanimous vote from the nuclear regulatory commission. Um, and so, you know, once we receive that license officially in september of last year, we were excited to get to work. Um, but, you know, when you look at these abandoned uranium mine sites, 75% are on federal and public land. And so, you know, the, the regulatory framework hasn't caught up with innovations like ours.
▶ 1:32:45And so, you know, for example, we're, um, we've submitted license applications to remediate a site in western colorado, but we had to go do our pre-mobilization notification with the nrc, which is a 90 day process. Then we have to do a plan of operations with the blm. Uh, since because we're recovering the critical minerals, it triggers 1872 mining laws, we're effectively being treated as a new mine. And then we also have to work with the state and colorado for a mine reclamation permit. And so there's a lot of redundancy.
▶ 1:33:13And in our nrc, uh, you know, the environmental assessment that was conducted, there was a finding of no significant impact. In fact, the nrc said we only make the environment better, but we're still having to, you know, um, and the staff have been amazing to work with in these different agencies, but the framework doesn't allow that. But even after getting our nrc license, you know, that was a huge, you know, we saw a lot of private investment that we were able to attract. Um, because, you know, we were showing the ability that we are able to economically and sustainably recover these critical minerals.
▶ 1:33:42>> in the bills we're sort of talking about today. Are there particular provisions that you especially care about us passing. >> for the charm act, the legacy mine cleanup act, and Mr. representative are the bills that we strongly support and that we believe, you know, for our particular purposes, will help, uh, unlock additional innovation and private sector investment in this space. >> is there anything you want to tell us is undone without if we pass these bills? >> I think they are all very strong steps.
▶ 1:34:09I think hearings like this are a great discussion to, you know, there's there's much more to be done. But I we believe they're very strong steps in the right direction. >> I think we all want to develop policies that will encourage that kind of thing. And I hope we hope we can. It seems like a very constructive step forward. Uh, thank you, Mr. chairman. I yield back. >> gentleman yields chair now recognizes the gentlelady from iowa, doctor miller-meeks, for five minutes for her questions. >> thank you so much, chair palmer, and ranking member for holding this important legislative hearing.
▶ 1:34:37Today's hearing is about something deceptively simple. We have the material. We have the technology, we have the need. And yet we are still shipping critical minerals overseas to be processed and sold back to us. The united states built a recycling system around one question how do we safely dispose of this? That was the right question for its time. It's the wrong question for this moment.
▶ 1:35:02The materials flowing through our waste streams today are the same materials our defense sector, our grid, and our manufacturing base depend on. This is a question of energy security and industrial competitiveness. The market is already trying to solve this problem. Commercial actors are structuring contracts to recover and reuse these materials domestically.
▶ 1:35:21I passed a bill that allows the ames lab to be able to do that with hard drives from the dod, companies are investing in new technologies to unlock value from existing waste streams and building the processing facilities. We need to keep that value here at home, but our permitting system was designed for a different era, one where speed and efficiency were not strategic imperatives. Every month of delay is a month. China is pulling further ahead. Mr.
▶ 1:35:48Goldberg, we currently have a regulatory system designed, as I said, around the system of how do we safely dispose of this? The market is increasingly asking, how do we recover value from this? As an expert on rcra, how much of what we're struggling with today is simply that we've never updated the underlying assumption. >> thank you for your question.
▶ 1:36:10Um, I think that a large part of the problem here is that the rules were developed back in the 1980s and 1990s, before lithium ion batteries really existed. And, um, as a result of that, uh, the, the existing regulations and mind you, um, for other types of batteries, uh, there are many different provisions that are specific to other kinds of batteries.
▶ 1:36:33So it's to facilitate processing of those lithium ion batteries didn't exist back when the rules were written. And they definitely need updating. >> thank you, Mr. buckingham. The united states has some of the most advanced materials processing research in the world. In iowa, the ames national laboratory has ground has done groundbreaking work on critical mineral separation and processing.
▶ 1:36:58But there's a persistent and frustrating gap between what we can demonstrate at the bench scale and what actually gets built at commercial scale here at home. What's sitting in that gap? Is it capital? Is it our regulatory system, or is it something more fundamental about how we translate american innovation into american american industrial competitiveness? >> thank you, representative, and the responses all the above. The biggest enemy for an entrepreneur and innovator is time.
▶ 1:37:26And if you have to go through significantly redundant permitting hurdles, that time kills you and that capital typically when these venture, um, you know, funds are backing new innovations, you've got two years of runway to get to the next milestone. And so if you're being slowed down by different permits, it's going to be very hard to attract that capital and overcome that valley of death.
▶ 1:37:46>> would you say, given your answer to the last question from representative peters about the numbers of, um, agencies that you had to go through having them done concurrently or rather than sequentially would certainly reduce that time and also reduce the amount of capital. >> streamlining would be huge. When we go clean up a site, you know, we're dealing with at least three different agencies and it's pretty much the same information for each one. >> I thank you, Mr. goldberg.
▶ 1:38:11Aluminum is one of the only materials designated as a critical across every federal agency, and recycled aluminum already makes up roughly 85% of U.S. production. But recovery rates for aluminum packaging remain well below their potential, representing an estimated 1 to $2 billion annual loss to the economy. Part of that is collection, which my recycling infrastructure and accessibility act aims to address. But part of it is that our material sorting technology has fallen far behind china and europe.
▶ 1:38:39The material we do collect ends up being shipped overseas for processing. How might the charm act and similar efforts incentivize the sorting and processing technology upgrades? We need to actually capture the value of what we're collecting. >> uh, thank you again for your question. Um, I personally don't work a lot on aluminum issues.
▶ 1:39:00Uh, but at the same time, I think that the charm act in general, uh, provides a great framework for coordination of, uh, agencies to address the recovery of, uh, of all types of critical minerals from, uh, from materials that, uh, that are currently viewed as wastes. >> and thank you very much. I have two questions I'll submit for the record. And with that, I yield back. >> gentlelady yields. The chair now recognizes gentlelady from california, miss barragan, for five minutes for her questions.
▶ 1:39:30>> thank you, Mr. chairman. Critical minerals are essential to our economy, our energy system, and many of the products americans use every day as we look for ways to strengthen domestic supply chains and recover more of these materials here at home, we also have a responsibility to ensure that recycling and recovery efforts are done safely and deliver real benefits to workers and communities. So I look forward to hearing from the witnesses how we can advance both of these goals. Mr. buckingham, I want to start with you.
▶ 1:39:57Some of the bills before us, particularly, particularly the legacy mine cleanup act, and I would support recovering critical minerals from contaminated sites in mining waste. What safeguards or accountability measures should congress consider to ensure that these projects also deliver meaningful cleanup benefits to communities? >> thank you, representative, for the question.
▶ 1:40:21And, you know, I would add for those bills, none of none of those bills change the cleanup standards or the safety, um, precautions that must be taken for us when we approach these abandoned uranium mine sites. We have radiation safety officers, assistant radiation safety officers. Um, there's a significant amount of sampling and containment that go into this.
▶ 1:40:40And we use, you know, the most rigorous standards both at our nrc licensed sites as well as our superfund sites, to ensure that we are meeting those safety standards, as well as those cleanup standards and those activities. >> great. Um, Mr. clinic, the average person buying a car, a phone or a computer, why should they care about battery recycling? >> well, they have a lot of value in the batteries that they carry. There's a lot of critical minerals that are important for the production of a new battery.
▶ 1:41:08And if we can recover those things in the end of the day, if you create a closed loop supply chain for these minerals, it will lower the cost of those devices, right? If we don't have to source things from australia or from maybe china or africa, other places like that, it's going to lower the cost of the consumer for these devices, whether it's a vehicle, a phone, whatever it might be. >> so if a consumer has a phone and they do the recycling properly, prices down the line will go lower for them. >> absolutely. >> and if they don't, they're going to continue to go up.
▶ 1:41:38>> they're going to continue to go up because we're going to depend on foreign sources for those materials to make those batteries great. >> thank you, Mr. dunn. The brace act is intended to make it easier to collect, store and recycle lithium ion batteries as congress considers expanding. Um, I'm sorry, doctor don, I think I misread that. Um, as congress considers expanding battery recycling, are there environmental safety or transparency measures that should accompany that growth to protect workers and nearby communities?
▶ 1:42:10>> yes. Thank you for the for the question. Um, we must uphold these bedrock policies that we already have because there is a risk to human health from the transportation and the processing. But there are. >> other additional measures that could be taken that actually cover the specific environment. For lithium, nickel and cobalt. >> um, we can prioritize. >> uh. Cover within. >> the. >> united states to boost up those facilities.
▶ 1:42:38And in addition. >> we can continue doing research on the emissions from the facilities. Um, and look at, uh, contaminants such as pfas that could contaminate surrounding communities. >> great. Thank you. Mr. um, industry surveys have found shortages of skilled workers across the battery supply chain, particularly technicians and manufacturing workers. Doe and the department of labor have worked to develop a battery workforce standards and apprenticeship pathways.
▶ 1:43:06But much of that effort has focused on manufacturing. Um, are there unique workforce needs in battery recycling and materials recovery that aren't receiving enough attention? And what can congress do to support them? >> thank you. Representative that's a great question. I think it's it's an industry problem in whole, whether it's battery production itself or battery recycling, the technicians required just the people to build plants, right? We have to build assets to, to be able to recycle and recover these critical minerals.
▶ 1:43:33And having electricians, pipefitters, things like people like that, that actually can do those trades as well, is a, is a real shortage in the united states. Um, we're working obviously with the federal government on different training programs for battery recycling facilities. A lot of these facilities are chemical processing plants that was mentioned earlier, hydrometallurgical processing. So we're competing with the chemical industry in some respects for those operators in that talent.
▶ 1:43:56Um, but I think having programs that are really specifically focused on the training of operators for these facilities is absolutely critical going forward. And it starts, it starts in grade school. It doesn't start in college. We need to start back in grade school, high schools and be able to attract and really teach people what battery recycling is and the value of their their job. >> well, I'd love to see that lesson for grade school on this. So thank you so much for your testimony and all our witnesses, I yield back. >> thank you. Gentlelady yields the chair now recognizes gentleman from new york, Mr.
▶ 1:44:27Langworthy, for five minutes for his questions. Thank you very much, Mr. chairman. New york may not have the large critical mineral mines found in other parts of the country, but our manufacturers and advanced technology companies depend on these materials to make the products that power our economy and support our national security. And as demand for these materials continues to grow, it is important that we take in all of the above approach to strengthening domestic supply chains through mining and recycling, recovery, processing and refining.
▶ 1:44:54Here in the united states, you know, several of the bills before us look beyond traditional mining and focus on recovering critical minerals from existing waste streams in legacy sites. And that is particularly relevant for western new york and the southern tier, where a long history of manufacturing and industrial activity has left behind sites that may represent opportunities for cleanup and redevelopment and recovery of valuable materials.
▶ 1:45:21And if done responsibly, these efforts could help strengthen our domestic supply chains and create new economic opportunities for communities that I represent. Uh, Mr. klein, if these waste streams in in legacy sites contain materials that can help strengthen domestic supply chains, what are the biggest barriers preventing that recovery today? >> I think a couple of things, representative, thank you for the question.
▶ 1:45:45I think when you look at the supply chain that we have the assets that we have, again, designing them to be able to do recovery of waste streams is something that's critical. There's a lot of technology out there that's been talked about today about recovering things like uranium. Same with nickel, cobalt, lithium. There's there's technologies out there to do that. I think one of the biggest hurdles is, again, the permitting process and ensuring that that is a very defined process. Timelines are defined. The objectives are defined. Once that's done, uh, having, having the ability to have capital to do that.
▶ 1:46:13The government has done a tremendous job over the last five years in providing some grants, loans, things like that, support for the industry. I think that needs to continue. If you step back and look at what china has done over the last 15 years, they've invested trillions, not billions, but trillions of dollars in the battery industry to build not only batteries, but also the recycling infrastructure to be able to recover those critical minerals. >> and in every pound of material we can recover here at home is one less pound that we have to source overseas.
▶ 1:46:39And I think that's that's something that we have to be laser focused on as we work to strengthen that domestic supply chain. We need to be looking at every opportunity to reduce our dependance on foreign sources. Uh, you know, staying with you, sir, china dominates significant portions of the global critical minerals supply chain. If china were to significantly restrict exports of critical minerals or critical mineral processing capacity tomorrow, what would be the most immediate impact on the american economy?
▶ 1:47:09>> it'd be a large impact representative. We we import over 60% of the batteries today that we need in our country, 660. So that's a large number of batteries that are coming from other countries, including china. Um, so it would significantly impact the defense industry. It would impact the automotive industry. It would impact our grid industry on how we store energy as well as the big thing now, which is data centers, data centers need batteries to continue to run. So it would have a tremendous impact in our entire economy. >> it's deep trouble.
▶ 1:47:37How prepared is the united states today to respond to that kind of supply chain crisis? >> yeah, I think I think the the us is working hard. Obviously, the administration today is very focused on, you know, unleashing opportunities for companies to to develop the critical minerals supply chain. I think we have a long ways to go. Again, china has had a 15 year plus head start on on us for this. But I think you have a lot of entrepreneurs, you have a lot of companies, you have a lot of investment that's ready to be deployed to help build this infrastructure out.
▶ 1:48:07And we just continue to support that. >> well, thank you very much. Many of the opportunities discussed in these bills involve areas where epa already has expertise, including environmental cleanup and remediation and waste management. Uh, Mr. goldberg, what role could epa play in helping to identify and recover critical minerals from waste streams, legacy sites, and contaminated land? And how could the epa work with other federal agencies to support these efforts? >> uh, thank you for your question.
▶ 1:48:37Um, the epa, the the regulations already contain a number of provisions that are designed specifically for recovery of materials from, uh, of other types of materials, from a variety of waste materials. And, uh, the, uh, they have the opportunity here to do a similar kind of thing with respect to recovery of critical minerals from, from waste and secondary materials.
▶ 1:49:06>> well, well, thank you very much. I mean, these issues are more than just about critical minerals. They're about supporting manufacturers, creating jobs, and ensuring that american businesses have access to the resources that they need to compete and to grow. And I look forward to working with my colleagues, hopefully on a very bipartisan basis, to advance these bills and strengthen america's critical minerals supply chains for the long haul. And I yield back. Mr. chairman. Gentleman yields chair now recognizes the gentleman from florida, Mr. soto, for five minutes for his questions. Thank you, chairman.
▶ 1:49:41You know, looking at. >> uh. >> the need for rare earth minerals there in just about everything and are critical to our way of life. Uh, whether it's cars or computers, cell phones, appliances, and other technology. And the demand is huge. When I look at my home state of florida, um, 20% of vehicles last year were either ev or hybrids.
▶ 1:50:05Uh, and solar was a huge solar panels were a huge purchase last year, uh, among others, although we, we do have to address the, the lapse of those tax credits, but people continue to buy these things so that we know the demand is huge and we can mine it, uh, and we can recycle it. We only have one major rare earth mine site that does the processing eagle pass in california. A lot of it comes from china and other countries.
▶ 1:50:36And so we're working on bipartisan efforts to increase our mining capacity. Uh, which is why I'm supportive of the, you know, making sure we clean up abandoned mines like the legacy mine cleanup act, which is a good start. But as we look at recycling, uh, today, we're going to be looking at used batteries at, uh, coal ash, landfill recycling, among other things.
▶ 1:51:00Um, but the one that's most ready for prime time right now is, is the recycling of, uh, of batteries. Uh, so the brace act, you know, we started talking about it today establishes standards for use lithium ion batteries, uh, making sure that we establish how to store this sufficiently to protect public safety. Of course, um, how to get there is a really key issue in orlando. We do mostly drop offs with green tech, uh, in, uh, in the northern orlando area.
▶ 1:51:29And then we see in georgia and covington, uh, ascend elements, a major southeastern, a commercial scale ev, lithium battery recycling plant. Um, we also see charm where the epa would develop national critical minerals recovery strategy. Uh, uh, obviously very important for all these things. Um, but the key is how do we classify and treat used lithium ion batteries?
▶ 1:51:57And I did want to hear from the panel on it of our esteemed experts. I'll start with Mr. klonsky. Um, give me some of the basics on my constituents could really kind of sort through as far as, how do you think we should treat and classify lithium ion batteries for, to benefit, uh, improving recycling. >> yeah, I think, Mr. goldberg, I'm sorry senator. Thank you. Representative. Thank you for the question. I think Mr. goldberg mentioned a few things about some of the there are transportation regulations.
▶ 1:52:24There are fire codes or osha regulations on how we actually handle lithium ion batteries. So there's a lot of infrastructure, a lot of framework in place today on how we handle those materials and those batteries. Can they be improved? Absolutely. There's always opportunities to improve it. And, you know, we can't go a day where we don't see there's been some fire in a in a waste facility, right, where someone is improperly disposed of batteries.
▶ 1:52:46So addressing up front, like you were asking the collection of batteries, how they're collected, how they're transported, how they're stored, things like that is something I think we got to be better with the public and educating on what needs to happen. You shouldn't throw a lithium ion battery or a phone in your trash. It's that's not where that battery should go. We have a collection network across the country where we allow people to actually, they can buy a pail system and we'll, we'll have the battery shipped to our facility and properly process. So there's opportunities there for that.
▶ 1:53:15>> what parts of the brace act do you think improve the situation? >> the brace act, in my mind, it provides some very clear guidelines on how collection, how we should manage actually the transport of lithium ion batteries. It actually also kind of helps you understand what the classification of lithium ion battery is versus a solid waste. So that's where we're kind of trying to ask for some of those exemptions. >> thank you. Doctor dunn. Where would you like to see improvements to the brace act. Uh just top top lines on this.
▶ 1:53:48Microphone. >> thank you. Thank you for the question. The waste classification and permitting that already exist, we believe should should stay. They are there for a reason because there is a risk to human health from these products. And we can do both abide by these regulations and also support our recycling facilities.
▶ 1:54:08At the moment, a lot of the issues they're seeing is a lack of feedstock, and we will see that increase around 2030, when most of the evs that you're mentioning start to retire. And so that really uptake is essential to, to really boosting their profits.
▶ 1:54:25And as much as we can prioritize have the having batteries processed in the us and have those minerals recovered, um, the better the industry will be supported and we can do that without um, creating exemptions in bedrock environmental policy. >> thank you for both your perspectives and I yield back. >> gentleman yields. The chair now recognizes the gentleman from new jersey, Mr. menendez, for five minutes for his questions.
▶ 1:54:52>> thank you, chairman, I appreciate today's conversation centered around increasing critical minerals, circularity through recycling and recovery. That goal is especially important for batteries, which power our daily lives and which rely on mineral resources that we must recover and reuse as much as possible. Extended producer responsibility, or epr, is one policy approach to address battery disposal challenges.
▶ 1:55:15In 2024, new jersey passed a first of its kind epr law for electric vehicle batteries to incentivize recycling and sustainable management. Because these batteries contain valuable critical minerals such as lithium, cobalt and nickel, collecting and recycling them can help us create a strong domestic supply of critical minerals while reducing human health and environmental harms.
▶ 1:55:37That is why the infrastructure investment and jobs act directed the epa to collaborate with the department of energy to develop an epr framework for states that will address recycling goals, cost structures for mandatory recycling, reporting requirements, product design, collection models, and transportation of collected material. Doctor dunn, is my understanding that you have been engaged in conversations with the epa and doe on this effort.
▶ 1:56:01So let me ask you, how can epr help boost ev battery recycling in the us and lower the risk of batteries being mishandled or landfilled? >> thank you for the question. Yes, extended producer responsibility holds the producer responsible for ensuring those batteries are recycled and collected, and those materials are recovered, and that's essential when the the recycling isn't always profitable. These batteries are dispersed through the nation, and they're also dangerous if they're not stored properly.
▶ 1:56:30So creating this kind of program really reduces the cost to public health and, um, and increases the mineral recovery. This will boost the recycling. Um, facilities, increase their feedstock and also ensure a domestic supply. >> I appreciate that. And by ensuring that producers are responsible for managing ev batteries, epr can help create a comprehensive and efficient system.
▶ 1:56:55Meanwhile it can also increase, as you mentioned, critical feedstock for battery recyclers and ultimately bolster our domestic supply of critical mineral minerals to meet our need for clean, affordable energy. Doctor dunn, in your testimony, you mentioned the importance of high recovery ♪rates in the lithium ion battery recycling, recycling, recycling. We're going to just keep going, uh, making sure that we capture as much critical mineral content as possible. How do minimum mineral recovery rates help maximize the environmental benefits of battery recycling?
▶ 1:57:28>> thank you. It's a tongue twister for me. >> I appreciate it. >> um, recovery rates are essential. It it basically creates a minimum threshold of the lithium nickel, manganese, cobalt that are in the batteries. That means that the recovery isn't dependent on market um, market volatility, which we are seeing in these critical minerals because of the extreme increase in demand and uncertain supply. Um, this isn't a new idea. It was enacted in the european union.
▶ 1:57:58Um, they have a 90% required recovery of nickel and cobalt 50 and then 80% for lithium. And this is also something that's being taken up by colorado. Um. >> and sort of building off of this can minimum, uh, mineral recovery rates paired with epr help shield recycling companies from the volatility of global mineral prices. >> yes, I believe so, because then the producer of the battery is paying for the recycling. >> right.
▶ 1:58:24And from a, from a us perspective, this is probably the most efficient means of getting these critical minerals back into our system through recycling, recycling, recycling. I'm just going to, I don't know what's happening. Um, but as opposed to sort of trying to restart american manufacturing, production, exploration, etc. Right. So this is actually the most efficient means that we can explore produce. >> yes. It's extremely efficient.
▶ 1:58:52I mean, we have all these minerals within our economy that most of and some of them that we've imported, and we can recover them and add them to our domestic production. >> and finally, I want to return to my point about new jersey's leadership in battery epr and why we should continue to build on the progress that states are already making. Can you talk about, um, preserving state leadership on this front, the importance of it? >> yes. Um, many states have recognized the need for this kind of policy.
▶ 1:59:20It started with consumer electronics batteries because of the fires in landfills and others. And now it's moving to the bigger batteries as these evs come offline. Um, the states are moving first, but it is something that the, the whole us could benefit from. >> appreciate that. Thanks so much. I yield back. >> thank the gentleman. Um the chair now recognizes himself for five minutes for questions. I want to raise some points that really haven't been raised thus far.
▶ 1:59:50Uh, in regard to, um, china's control of, of practically the entire process for, um, rare earth elements and critical minerals. Uh, they, they already control 90% of the world's processing for heavy rare earths and which allows them to basically control the cost and availability of critical elements, uh, for not just the united states, but the entire western hemisphere.
▶ 2:00:18Um, so they control the mining, the separation, the processing and, uh, recycling and refining on the final stage for critical minerals elements that, like I said, the us and the rest of the world depend. Um, one of the things that, that I want to run by, uh, you and particularly you, Mr.
▶ 2:00:45Kolinsky, is extracting lithium and cobalt and neodymium is a very difficult process. But china has developed a technology to do this at scale. And my guess is they're not as concerned about environmental impact as we are. So we're not going to use the the technology like china uses. We're going to do this better. Uh, but does the us or any of our allies, um, possess this ability to do this at scale currently?
▶ 2:01:15>> yes, sir. Thank you for the question. Yes, we do possess that technology. We actually have it ready to ready to go. The hydrometallurgical processing process is actually demonstrated in other countries as well. Um, we haven't built one in the united states, but we've got the technology ready to ready to be deployed. We actually have a grant that, uh, is being, being positioned to use for, for building a hydrometallurgical processing facility in south carolina. >> and we can do this without harming the environment. >> absolutely, absolutely. 100%.
▶ 2:01:43>> also, we've talked a lot about batteries, but, um, we get, if we can recycle magnets that are used in automobile manufacturing, uh, turbines, uh, we could recover neodymium, um, scrap alloys, we could recover gallium and germanium. Do we have the ability to do that? Mr. clark? >> yes. Sorry. Yeah.
▶ 2:02:05We do have the capability that there's a number of companies out there that have started to, to actually look at deploying capital in the united states to, to be able to recover the rare earth metals from, from magnets. >> on a on another. Topic, it's not, it's the same topic, but, but my concern is, is that china is, is using, um, front companies to buy up our e-waste and particularly batteries and
▶ 2:02:36Like dead car batteries, things like that. To an extent that I think it is. And it's been mentioned several times, I think, uh, throughout this hearing that it's a threat to our national security, it's a threat to our economic security, but our national security as well. Do you, uh, and this is a question for each of you.
▶ 2:02:55Do you think that we're at a point where we need to ban the export of recyclable e-waste and other, um, materials containing critical minerals and rare earth elements to nonaligned nations? >> absolutely. I think that's the that's one of the number one priorities is banning the export of these materials, whether it's a battery or a gigafactory scrap. So we have lots of gigafactories in the united states that are producing batteries, ban the export of those waste materials as well, because they are they are going outside the country today. China will pay a lot of money for those materials.
▶ 2:03:25And I think having a robust framework to to ban the export of that would help our industry tremendously and keep those minerals here. Like I mentioned in my testimony, we pay a lot of money for those minerals to bring them here to build a battery united states, and we just let them go to china. >> well, it would also keeping them here would create a marketplace that I think would incentivize people to remove them from areas, uh, that, that are potentially harmful to people. Mr. buckingham, what are your thoughts on it? >> yes, thank you, Mr. chairman.
▶ 2:03:56I think it is essential that we keep our our minerals here. We don't have a problem of geology or supply here in the united states. We have issues with, uh, processing and getting those up to the level to compete with china. Um, and streamlined and, um, well defined permitting process. And I think that's what we need to be able to, to unleash further production. >> doctor dunn. >> thank you for your question.
▶ 2:04:25Um, I do believe that that we can invest in our infrastructure here and incentivize the recovery. And that will lead to a lot more domestic supply and really fill the gap of feedstock that is necessary. >> thank you, Mr. goldberg. >> uh, thank you again for your question. Um, there are already certain, uh, restrictions on export of hazardous waste, um, from the united states.
▶ 2:04:50But I think that, um, you know, for example, with china, that they have taken the position that the black mass is not a waste at all if it meets certain standards. And so they're sort of, uh, opening.
▶ 2:05:16>> the products from being exported to china, but they're going through nonaligned nations and, and front companies to