U.S. Carbon Removal: An Advantage Over China in the Critical Minerals Race
by: Makoto Hamamoto Eyre, CEO and Co-founder of Homeostasis
This month, China announced new restrictions on the export of graphite—a mineral that’s essential to the production of EV batteries—as a retaliation against US limitations on semiconductor exports. The news set off alarm bells as China currently dominates the global production and processing of graphite by a wide margin.
While a substantial challenge, this turn of events could also present an opportunity to the United States. With the passage of the Inflation Reduction Act containing incentives like the 45X Advanced Manufacturing Production Credit, we’ve seen a meaningful increase in domestic graphite proposals. Prospecting and accessing natural domestic reserves, spinning up natural graphite processing plants, and doubling down on domestic synthetic graphite production are all making a stronger American clean energy economy. These processes also historically result in 17 tons of CO2 emissions per ton of graphite. There are, however, new emerging technologies that make it possible to not only ramp up production of graphite domestically but to remove greenhouse gasses from the atmosphere in the process.
The practice of carbon dioxide removal for geologic storage, where CO2 is pumped and stored underground, has gained traction in the past decade as a key pathway to mitigating climate damage. While critical for gigaton scale CO2 removal, we still don't know the seismological effects of storing that much CO2 underground, nor the efficacy of existing methods in preventing that CO2 from leaking back into the environment. Further, the business model for CDR has been tied to volatile carbon credit markets, putting the businesses that are shepherding the development of these critical technologies at risk. The industry needs time, but that is one thing the world doesn’t have.
While a developing field, it’s been demonstrated that atmospheric carbon dioxide can be transformed into the same kinds of graphite that are needed for EV battery manufacturing. When it comes to CO2 removal, this is a triple-win:
active removal of past carbon emissions
establishing a business model that substantially outpaces others in CDR
securing America’s hold on cutting-edge technology in an increasingly volatile world
This approach means mitigating climate change, producing valuable raw materials for the clean energy sector, and reducing America’s reliance on potentially adversarial foreign suppliers. The news from Beijing should be a wakeup call that we need to invest in these new approaches.
I’m the founder of a Washington-based climate tech startup, Homeostasis, that specializes in removing CO2 from the air to make raw materials used in EV batteries and other components for the net-zero transition. Given the critical material geopolitical tensions that do not seem to be abating anytime soon, it turns out that this isn't just a good business strategy, it's a national security imperative as well.
With the Inflation Reduction Act’s historic investment in carbon removal, companies like Homeostasis have essential support to launch needed innovations. The developments in China underscore why further action is needed.
As an example of how to stimulate innovation in this field, some U.S. states like Washington have made investments in greenhouse gas removal technologies. Earlier this year, I commented on Washington State’s allocation of $12 million towards grants that will fund climate tech research & development, including CDR. More states should follow. We have the chance to foster a comprehensive ecosystem that supports this emerging sector. This includes facilitating educational and training programs, backing university-led research, and ensuring social equity through partnerships with community organizations.
The confluence of climate crisis and geopolitical friction makes innovations in carbon technology essential. We have a unique opportunity to transform a multitude of challenges—environmental, economic, and national security—into a united pathway forward. Strategic focus and investment at a national level can make this vision a reality, converting crises into launching pads for resilience and sustainable growth.
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