Joint Ventures in U.S. Mining of Critical Minerals: Contracting Structures and, Regulatory and Tax Considerations

Description

Clean energy technology deployment around the world highlights the strategic issue of security of critical minerals supply chains giving rise to increased competition for resources. Strategic JVs are entered into for U.S. mining of critical minerals based on various reasons, such as access to mining expertise, technology, cost sharing and local geographical considerations.

Economic, operational, and other challenges require JVs to spread costs, overcome limitations, and mitigate risks. These JVs may include direct investment by vehicle / battery manufactures, in addition to tradition supply chain mining companies.

The potential parties to a JV must weigh several considerations when determining what type of structure to use, including issues regarding transferability of the interests acquired, management, and tax. The parties must delineate the scope and purpose of the JV and define what business activities the JV can and cannot do, as well as address potential conflicts with the parties' other businesses.

Listen as our authoritative panel of energy and mining professionals discusses the market trends driving recent joint ventures for U.S. mining of critical minerals as well as structural considerations and IRA tax incentives. The panel will also examine several issues related to joint ventures, such as management and control, transferability, mutual interest provisions and consents.