US Nickel Permits 'Damaging Clean Energy Transition'
A leading figure in North American mining is calling for urgent reform of the permitting process in the US in order to support domestic nickel production and the switch to cleaner energy.
Gregory Beischer is CEO of exploration company Alaska Energy Metals Corporation (AEMC), and says there is a "disconnect between what is being said and what is being done at the federal level" regarding the transition to electric vehicles (EVs) and the mining of critical metals needed to support this shift.
"On one hand, the government has created great urgency around the need for electrification, but on the other, no urgency around the reforms needed in the permitting process," Beischer tells Canadian Mining Journal.
He argues that without “timely, defensible permits” projects “cannot move forward, domestic mines cannot be built, and society cannot transition to net-zero emissions”.
The CEO's comments come as the US faces increasing pressure to secure domestic supplies of critical metals, including nickel, which is essential for EV batteries and other green technologies.
Beischer points out that the US is currently "almost completely trade-dependent on foreign entity of concern (FEOC) countries, including China and Russia" for its nickel supply.
He says this dependence is particularly concerning given the US Geological Survey's designation of nickel as a "single point of failure" for the country in 2021.
According to Beischer, the US is "four times more dependent on China's minerals and their processing than it was on the Middle East at the peak of its oil dependence".
US mining industry's challenges in securing permits
Beischer argues that the current permitting process is one of the biggest obstacles facing the mining industry in both Canada and the US, but particularly in the latter.
He says this issue is hampering efforts to replace a century of internal combustion technology and infrastructure with electrified mobility.
His concerns reflect a broader industry-wide challenge, as mining companies struggle to navigate complex regulatory environments while meeting growing demand for critical metals.
Beischer suggests that without addressing these permitting issues, the US will struggle to meet its goals for electric vehicle adoption and emissions reduction.
Concerns over 'dirty' Indonesian nickel
While discussing the global nickel market, Beischer also raises concerns about the environmental impact of Indonesian nickel production, which has surged in recent years.
He notes that despite an apparent excess of nickel in the market, the supply is not satisfying demand due to environmental concerns.
"Nickel from Indonesia, while cheap, is also dirty and therefore will not support climate and net-zero goals," Beischer states.
He points out that Indonesia's coal burning reached a record high in 2023, largely due to "green" nickel production, making the country the world's sixth-highest fossil CO2 emitter.
Beischer argues that continued reliance on Indonesian nickel will increase the global carbon footprint, contradicting the goals of electrification and emissions reduction.
Future of nickel production and AEMC's role
Looking ahead, Beischer sees potential for AEMC's Nikolai project in Alaska to play a significant role in US nickel production.
The company's Eureka deposit at Nikolai contains nickel, copper, cobalt, chromium, iron, platinum, palladium, and gold, which Beischer describes as a "multi-critical, multi-decade deposit".
He believes that if metals from this deposit are extracted and processed, it could mark a turning point in the US's decades-long absence of domestic nickel production.
Beischer emphasises the importance of traceability in the nickel supply chain, stating, "Investors, customers, and governments will want and eventually need to be able to trace raw battery materials such as nickel back to their origins".
The CEO also highlights the role of nickel in national defence, noting its use in military equipment such as tanks.
Regarding AEMC's future, Beischer says the company is pursuing both government grant funding and investments from major miners and refiners.
He acknowledges that access to capital is currently the biggest hurdle for AEMC, but remains optimistic about the company's prospects.
"With increasing metal prices anticipated in the coming years, we know that capital for a quality domestic critical and strategic metal mining development project like Nikolai will flow well," Beischer concludes.
