Drew Horn, the CEO of GreenMet, an organization that addresses vulnerabilities in critical mineral supply chains, told Federal Newswire that the Treasury Department's guidance for electric vehicles (EV) could enable foreign entities of concern (FEOC) to benefit from American taxpayer funds. Horn urged the Department of Energy to work with partners to enhance critical mineral traceability in order to prevent adversarial nations such as China from exploiting American consumers and taxpayers.

"By creating the exemptions for 'non-traceable battery materials' that are included in the proposed rule, Treasury removes any incentive for the EV and EV battery industry to lead the supply chain into development of robust critical mineral traceability capabilities and, in fact, opens a giant loophole for the PRC and other FEOC to continue to profit from U.S. taxpayer dollars," Horn said. "The Department of Energy should be able to work with the domestic and allied critical mineral sector and the EV industry to create a viable path forward for critical mineral traceability that prevents the PRC, Russia and other adversaries from exploiting American interests and profiting off the back of both U.S. consumers and the U.S. taxpayer. GreenMet, with our relationships across the entire domestic supply chain would welcome the opportunity to work with this Administration, the industry, and our allies to ensure that such traceability capabilities are robust, complete, and efficient."

Proposed guidance on EV provisions of the Inflation Reduction Act was released on Dec. 1, according to a press release by Treasury and Internal Revenue Service (IRS). The proposed guidance intends to create rules requiring manufacturers to ascertain whether critical minerals used in EV batteries were extracted or processed by a FOEC. The press release indicated that due to "commingling in the critical mineral supply chains" that could obstruct critical minerals' traceability, the Treasury is soliciting comments on a "transition rule" regarding FOEC.

A report from the U.S. Institute of Peace suggests that controlling critical mineral supply chains is an objective of Chinese President Xi Jinping's Belt and Road Initiative. These minerals are not only vital for electric vehicles but also play a key role in smartphones, satellites, and other technologies.

According to a report from Visual Capitalist, the U.S. is entirely reliant on imports for 12 out of 50 critical minerals deemed essential by the U.S. Geological Survey and at least 50% reliant on imports for an additional 31. China is the primary import source for multiple critical minerals for the U.S., including arsenic, graphite, gallium, tantalum, germanium, and tungsten.

During a hearing titled "The Role of Federal Research in Establishing a Robust U.S. Supply Chain of Critical Minerals and Materials" held on November 30th, Horn raised human rights concerns with some critical mineral supply chains. He noted that components of EVs come from "child slave labor" run by China. Horn argued that the U.S. should not be dependent on "such deplorable techniques" to support its critical mineral needs.

Horn is not only the founder but also serves as president and CEO of GreenMet, according to GreenMet's website. His previous roles include positions in the U.S. Departments of Energy and Defense as well as being a member of the U.S. Army Special Forces and the U.S. Marine Corps.