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U.S. Department of EnergyOffice of Policy and International Affairs

DOE’s Critical Materials Strategy

Diana BauerUS Department of Energy

Office of Policy and International AffairsNovember 3, 2010

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U.S. Department of EnergyOffice of Policy and International Affairs

Motivation• The global deployment of energy efficiency

and renewable energy technologies implies an increased demand for rare earth elements and other materials.

• This is one of the many challenges we face in advancing a clean energy agenda.

• The Strategy is one step towards addressing this challenge.

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U.S. Department of EnergyOffice of Policy and International Affairs

Approach to Address the Challenge• Supply chain globalization• Material substitution in clean energy

applications• Recycling, re-use, and more efficient use

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U.S. Department of EnergyOffice of Policy and International Affairs

Critical Materials Strategy Aims to

• Forge a common understanding within DOE of short- and medium-term issues related to critical materials in clean energy technologies.

• Build on existing work within DOE.• Assess DOE’s priorities and policy options.• Contribute to a public dialogue.

U.S. Department of EnergyOffice of Policy and International Affairs

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U.S. Department of EnergyOffice of Policy and International Affairs

Strategy Scope• Material demand for 4 energy technologies:– Wind turbines: magnets– Electric vehicles: batteries, magnets– Solar cells: PV films– Energy efficient lighting: phosphors

• Energy Deployment Scenarios– Moderate Deployment: IEA Baseline, Reference – Rapid Deployment: IEA Blue Map, 450 Scenario

• Challenges and opportunities in the short and medium term

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U.S. Department of EnergyOffice of Policy and International Affairs

Priority Elements

U.S. Department of EnergyOffice of Policy and International Affairs

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U.S. Department of EnergyOffice of Policy and International Affairs

Technology High Deployment Scenarios

20102011

20122013

20142015

20162017

20182019

20202021

20222023

20242025

0.0010.0020.0030.0040.0050.0060.0070.00

Wind Additions

OffshoreOnshore

GW

20102011

20122013

20142015

20162017

20182019

20202021

20222023

20242025

- 5

10 15 20 25 30 35 40

Additions of Hybrid and Electric Ve-hicles

EVPHEVHEV

Mill

ion

Vehi

cles

20102012

20142016

20182020

20222024

0.005.00

10.0015.0020.0025.0030.0035.00

Global PV Additions

PV additions

GW

Global CFL Demand

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U.S. Department of EnergyOffice of Policy and International Affairs

Project TimelineTO DATE

• March 17 – Assistant Secretary Sandalow announces plan to develop DOE’s Critical Materials Strategy

• May 6 – Request for Information (RFI) released• June 7 – RFI closed• June- present – Analysis and drafting

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Report will be available later this year

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U.S. Department of EnergyOffice of Policy and International Affairs

Extraction Processing Components End Use Applications

UUPSTREAM DOWNSTREAM

Recycling and Re-Use

The Strategy is Addressing the Entire Supply Chain

U.S. Department of EnergyOffice of Policy and International Affairs

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U.S. Department of EnergyOffice of Policy and International Affairs

Factors Complicating Materials Markets

• Large mining capital requirements• Material coproduction• Bottlenecks and lag times across the supply chain• Price volatility• Lack of market transparency• Geopolitical aspects of mining and manufacturing• Uncertain future demand profiles

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U.S. Department of EnergyOffice of Policy and International Affairs

Topics Explored in Connection with the Strategy

• Information• Financial Incentives• R&D• Education and Training

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U.S. Department of EnergyOffice of Policy and International Affairs

Related Government Activities• GAO Report: Rare Earth Materials in the

Defense Supply Chain • CRS Report: Rare Earth Elements: The Global

Supply Chain• DOD – Forthcoming study identifying defense

applications of rare earths• OSTP– Rare Earth Elements Interagency

Workgroup

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U.S. Department of EnergyOffice of Policy and International Affairs

Questions?http://www.pi.energy.gov/diana.bauer@hq.doe.gov