Illustration: Sarah Grillo/Axios
NDAA negotiators dropped big-ticket energy policy proposals from the final bill, but it still includes provisions that would impact energy, mining and EVs.
Why it matters: The Defense Department is a big greenhouse gas emitter that can move markets with its purchasing power. Small changes to Pentagon procurement and climate policy are worth watching.
Here's what caught our eye …
⛏️ Minerals, batteries and more: The final bill includes a series of minor provisions on mining and mineral processing that together could bolster the domestic industry.
- One provision would require a plan to add minerals to the National Defense Stockpile.
- Another would require the secretary to consult with permitting agencies on NEPA reviews for projects (namely mines) that would increase domestic availability of critical materials for the stockpile.
- The bill would also require intelligence agencies to draft an information-sharing strategy between government and companies to reduce threats to mining and energy projects. That includes risks from "economic espionage" and from countries like China having ownership in mineral supply chains.
🚗 EV fight continues: This year's bill continues a long-running debate about transitioning the Pentagon's non-combat vehicles to be electric or zero emissions.
- The fiscal 2023 NDAA required DOD to start transitioning to ZEVs by 2035, and the agency has made its own moves in that direction under President Biden.
- In the fiscal 2025 bill, lawmakers propose to require a fresh study of the merits of EVs versus internal combustion cars, including lifecycle emissions, charging infrastructure needs and "risks and challenges associated with the procurement and deployment of electric vehicles."
- That could help inform how the agency proceeds under Trump 2.0 — and add fuel to ongoing GOP criticisms of the Pentagon's EV procurement.
☀️ Chinese solar ban: The bill would ban DOD from buying solar panels manufactured in Xinjiang or regions of China that are "known to be produced with forced labor."
- This has been a major issue for solar supply chains. The provision could ripple through the industry — depending on how the Pentagon interprets it.
❌ No full disclosure: The NDAA would continue a provision from last year's bill prohibiting DOD from requiring climate disclosures from its contractors.
- That might be moot with Trump-appointed leadership on the way, but it's worth noting that the Pentagon won't be evaluating the climate impacts of its massive supply chains any time soon.
What's next: The House will likely pass the final defense bill this week after a vote on the rule Tuesday afternoon.
