Silver State Times

Green energy policies mean states like Nevada are moving toward relying more on renewable energy sources like wind and solar power, but some wonder whether the trend will ultimately make America more dependent on China in the global economy.

Nevada wants to be carbon-free by 2050, according to the National Conference of State Legislatures. Already it has removed its solar carve-out of 6% and it has a credit multiplier for photovoltaics and on peak energy savings. This is part of the renewable portfolio standards that some states have implemented to move toward a greener environment, the National Conference of State Legislatures said. The portfolio standards require that a specific amount of electricity sold comes from renewable resources. Iowa was the first state to create a standard, and now more than 50% of the states have renewable energy goals. 

“States have created these standards to diversify their energy resources, promote domestic energy production and encourage economic development,” according to the conference.

There are two different policies: the renewable portfolio standards and the clean energy standard. They are based on each state’s definition of renewable and clean energy, with “clean” being an energy source with zero carbon emissions. For example, in some clean energy standards policies nuclear energy is considered clean since it is not carbon free, but this is not how it is widely recognized. Also biomass is eligible in some policies, but it does produce carbon emissions, Nation Conference of State Legislatures stated.

While it is President Joe Biden's administration’s initiative to shift toward clean energy, considered to be a $64 billion market, there are some who feel that this could significantly raise prices for metals like copper, nickel, cobalt and lithium, according to Globe Banner.

“Prices could reach historical peaks for an unprecedented length of time and even delay the energy transition itself,” a working paper by the International Monetary Fund aid of the expected surge, Globe Banner reported. The paper said lithium could jump to $15,000 by 2030, which is $9,000 higher than the current rate. 

One of the main beneficiaries of such price increases could be China.

In a September article by Globe Banner, it was reported that the withdrawal of U.S. troops from Afghanistan could lead to China taking over the lithium industry in the country, which has an estimated value of $3 trillion. Afghanistan reportedly makes up 30% of the world’s lithum, according to the International Energy Agency, and due to it being used in various technologies, demand is expected to rise drastically.

“The chaos may offer China, which dominates the world market for rare earths widely used in technology, to step in to develop the mineral reserves, which also include lithium, used in the manufacture of batteries,” MarketWatch said, according to Globe Banner.

Ecological Futures Group Rod Schoonover told CNN that Afghanistan is one of the region’s richest in precious metals, but also metals for the economy of the future.

In what NPR described as a “surprise climate agreement” between U.S. and China, the two countries recently announced to cooperate on limiting emissions as they are the two highest green-house gas emitting nations on Earth.

It was also reported by Globe Banner that China is one of the world’s largest producers of photovoltaic products, including the materials that make up 80% of the world’s solar panels.

Key Elements Group Founder David Zaikin told Forbes Magazine, as reported by Globe Banner, that China has a major advantage due to the follies of the West.

“One of the biggest mistakes the West has done on green policies to cut CO2 emissions and trying to reduce dependence on oil- and gas-producing nations is that the transition to renewable energy puts the West at the mercy of China,” Zaikin said.