The President's Daily Brief - November 22nd, 2022. Special Brief: The Subtle War Over Renewable Energy

Episode Date: November 22, 2022

It’s November 22nd. You’re listening to the President’s Daily Brief. Your morning intel starts now. ------ A good day to you, ladies and gentlemen. I’ve got a Special Brief for you this morning that is shaping America — and the world. Joe Biden and Kamala Harris have been traveling in Southeast Asia over the past week. Ms. Harris is in the Philippines this morning, while Mr. Biden was in Indonesia last week. Now most of the headlines during their travels have focused on things like China, climate change, and military cooperation. And all of that has degrees of merit. But there was one development that the headlines didn’t capture – and you probably didn’t hear about it either. Yet it’s the story of the most profound importance.  And not just for you and me or even America. But the entire world.  Because folks there’s a battle brewing this morning. It’s a battle over renewable energy. And depending on how it plays out, it could affect the balance of global power – and the lives of families just like yours. So grab your maps, ladies and gentlemen – on your computer, phone or in your mind – and come with me this morning on a trip around the world — with stops in Indonesia, South America, and the Congo.  And by traveling together we’ll come to understand the importance of this story that nobody else is talking about. ------ Please remember to subscribe if you enjoyed this episode of the President's Daily Brief. Email: [e-mail] Learn more about your ad choices. Visit megaphone.fm/adchoices

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Your morning intel starts now. A good day to you, ladies and gentlemen. I've got a special brief for you this morning. That is shaping America and the world. Joe Biden and Kamala Harris have been traveling in Southeast Asia over the past week. Ms. Harris is in the Philippines this morning while Mr. Biden was in Indonesia last week. Now, most of the headlines during their travels have focused on things like China, climate change and military cooperation. And all of that has degrees of merit. But there was one

development that the headlines didn't capture. And you probably didn't hear about it either. Yet it's the story of the most profound importance. And not just for you and me and, well, even America, but rather the entire world. Because folks, there's a battle brewing this morning. It's a battle over renewable energy. And depending on how it plays out, it could affect the balance of global power and the lives of families just like yours. So grab your maps, ladies and gentlemen, on your computer or phone or in your mind, and come with me this morning on a trip around the world with stops in Indonesia, South America, and the Congo.

And by traveling together, we'll come to understand the importance of this story that nobody else is talking about. So let's get going. Ah, but one thing to mention before we take off a. in this flight of our imagination. We're going to treat this brief like a puzzle. I'm going to give you all the pieces of that puzzle with clues in each place that we stop.

And then, just like a CIA officer, you all are going to put those pieces together. Now, I'll chime in with my analysis and opinion too, but I think that you might be able to assemble that puzzle all on your own. And then you will see how important this brief really is. And with that, let's take off. off. And let's fly ourselves from wherever we are in the world this morning to the country of

Indonesia and Southeast Asia. It's where Joe Biden and other world leaders were hunkered down last week talking about all kinds of, well, fancy things like climate change, the war in Ukraine and trade. But Indonesia is actually itself worth talking about. It's a absolutely gorgeous place made up of over 17,000 different islands. Although this morning, the country is struggling to recover from an earthquake. Our hearts go out to those folks. Around 170 people have perished. But meanwhile, there's something else, and it's the first clue, the first puzzle piece to this morning's special brief. According to Bloomberg News, Indonesia's investment minister last week proposed the creation of a cartel. But this one would be an economic cartel, focused on a mineral,

specifically nickel. So the idea is that major nickel-producing countries, like Indonesia would coordinate on both the supply and the pricing of nickel. But why is that? Well, as PDB listeners know, nickel is an important mineral that goes into batteries, batteries that power electric vehicles and store energy from solar panels and wind turbines. And as it turns out, Indonesia has a lot of nickel. In fact, they're the world's number one producer of the mineral, controlling about 25% of the global supply. And their hope is that, just like the oil cartel called OPEC, Indonesia could create something similar for nickel producers. And if done right, that nickel cartel would make producers like Indonesia a whole bunch of money.

Plus, it would give them considerable power on the global stage. All because that nickel is so important for the world's electric vehicles and to store the power from solar panels and wind turbines. All right, friends, that is the first piece of this global puzzle. So let's now take off from Indonesia and fly east, way east, all across the Pacific Ocean to the South American countries of Argentina, Chile, and Bolivia. Now, we're landing in a pretty strange place. It's called the Atacama Desert. It's an area where the borders of Argentina, Chile, and Bolivia all meet. The Atacama is mostly desolate. There are some native people there and communities, but it's largely barren,

with very little rain each year, about a half an inch at most. But what the otacama lacks in rain, it makes up for in something else, and that is lithium. And it's because of that lithium that last month, the foreign ministries of those three countries announced that they are discussing the creation of a cartel. This one would be focused on the mineral lithium, which, as PDB listeners know, is a major component in batteries, lithium ion batteries, to be specific. So these three countries and that Outacoma desert control a majority of the world's known lithium reserves, about 56% according to estimates from the U.S. Geological Survey. And just like Indonesia, these countries want to take advantage of that renewable energy revolution.

They want the money and the power that come along with controlling a key element of this new form of energy. All right, folks, that is your second puzzle piece of the morning. For our third and final piece, we're going to actually leave the Otacama Desert and continue east all the way across the Atlantic Ocean to Central Africa. And we are going to stop in the country of the Congo. Now, it's not the first time that we've been here, is it? As PDB listeners probably remember, we've been talking about the Congo since last summer for two reasons. First, the Congo controls upwards of 70% of the world's supply of cobalt. that mineral is critical in the production of batteries, especially the batteries once again

used with electric vehicles plus solar panels and wind turbines storing their energy. But sadly, as PDB listeners also know, upwards of a third of that cobalt that's mined, well, it's actually mined by children. And that's part of the reason why I so often refer to this industry as dirty green energy. But putting that aside, there's also one other reason that we have talked. talked about Congo, and it has to do with the final piece of this morning's puzzle. We are here in this country of Congo to talk about war. Over the past week, the worst fighting in a decade has broken out in eastern Congo.

That is according to Reuters News Service and other news providers in the region. So on one side of the war is the Congolese government backed by the United Nations. On the other side is a rebel group known as M23, and they are backed by two neighboring countries, one of which is Rwanda and the other is Uganda. The government of Congo is unfortunately for them losing the fight to the rebels and, of course, their hostile neighbors. So in total, that's meant that 250,000 Congolese people have had to flee their homes. Now, the reasons for this war are complicated.

Partly it's due to ethnic tensions between the two main tribes in the region, the Hutus and the Tutsis. But the other big reason is because of minerals and who controls them. So you know about cobalt. We've talked about that a lot. But there's another important mineral that we haven't talked about. It's called tantalum. It's used in electronics like your phone and computer and batteries. And just like cobalt, the world's largest known reserve of tantalum,

is in the Congo. So you put those minerals together, the cobalt, the tantalum, and a bunch of others, well, you now better understand why Uganda, Rwanda, and the Congo are all fighting and why the fighting is getting worse. There's a lot of money at play and a lot of power to whomever controls those minerals, all because the renewable energy revolution desperately needs them. And that, my friends, is the third and final puzzle piece to this morning's special brief. But to recap, the first puzzle piece was Indonesia and their call for a nickel cartel. The second puzzle piece was the three nations in South America and their call for a lithium cartel.

And finally, we just heard about the war in the Congo, a fight that's partly driven over the control of cobalt and tantalum. So let's now imagine that we have taken on. off from the Congo in our special spy plane, and we've landed back at CIA headquarters. And there we sit together with our three developments in the world with those three puzzle pieces. And as we talk together about what we saw and what we heard, what do you think is the big picture? What's the key takeaway? The thread that pulls all these different puzzle pieces together that collectively would be very important that we should probably share this

information with the president in the actual PDB. Because in my spy trained mind, I see something pretty important. And I suspect that you do too. But before we get to that, let's actually take a quick break. But when we come back, we're going to talk about what I'm seeing this morning. Yet, in the meantime, I would love to hear your analysis and opinion on what you see. So send me an email. As always, the address is PDB at the first.

TV.com. Or you can send me a note on my personal website. It's briandeenright.com. So let's take that quick break and I will be right back. It's said everything happens for a reason, but maybe everything happens for a recess. Take noise cancelling headphones. Do they block hearing to heightened taste? Mmm, that sound seems to show. Everything happens for a reases. Pepsi prebiotic cola in original and cherry vanilla. That Pepsi taste you love with just 30 calories and no artificial sweeteners. Pepsi prebiotic cola. Unbelievably Pepsi.

Welcome back to the PDB, ladies and gentlemen. We're talking this morning about three puzzle pieces that we collected from our trip around the world. Stories in Indonesia, South America, and the Congo. By now, you all know. that the news that we collected has to do with renewable energy or dirty green energy, as I often call it. And you also know that when we kicked off this brief this morning, I put a challenge to you all. I asked you how these three puzzle pieces might create one big takeaway, so big, in fact, that we might even brief the president if we were putting together the actual PDB. So as you think

on your analysis and opinion, let me offer up mine. And I'd like to start with a touch. of history. Do you remember back in school when we learned about when oil was first discovered and it changed the world? There were lots of countries at the time who had some of the supply, even in places like Pennsylvania, Texas, and California. But the real motherload of oil was in the Middle East, in Iran, Iraq, Kuwait, and Saudi Arabia. If we remember that history, the British arguably got there first and then America. And those countries did so because they both knew that whoever controlled that oil, that energy, well, they would control the world.

And yet those Middle Eastern countries, they were no dummies. They knew exactly what they had. And that's why they formed a cartel called OPEC back in 1960. The cartel both then and now sets the supply and effectively. the price of oil. And that has made them incredibly rich and powerful. But for America and the United Kingdom, there was a tradeoff for that Middle Eastern oil. Time and again since the 1960s, both countries have had to flood the region with their militaries, either to provide protection from invaders or to put down rebellions between tribes or religious groups. And they did that because if the oil

supply were to fall into the wrong hands, it would be an economic and security nightmare. And let me be very clear on something. That's meant that families like yours and mine have had to send our kids and our grandkids to the Middle East. And in some cases, those kids in our military didn't come home alive. That was the price that we paid for that oil. And now we have a new oil. It's called lithium, cobalt, and nickel. We need all of those minerals for the batteries that power the renewable revolution, or perhaps better said, the dirty green revolution. And just like oil, back of the 1960s, those minerals largely aren't controlled by America. But now you all know who does. Countries like Indonesia, Bolivia, Chile, Argentina, and the Congo.

And just like in the Middle East, they're no dummies. They know what they have. And they're all looking to start cartels. And in the case of the Congo, it's caused regional powers to launch back into war. Now, that war is between tribes and has been fought for a pretty long time to be fair. But it's a war that's flaring back up once again because the leaders in the Congo, Rwanda and Uganda, all want to control those minerals, all to get the power and the money. that comes along with it. So let's ask ourselves a question based on these puzzle pieces and world history around oil. At what point will we, or maybe China, send in their troops to those countries to secure those minerals? At what point will America be at the mercy of these new cartels for lithium or nickel? Folks, ladies and gentlemen, that is the point. that's the thread that ties all of these stories together, the final picture created by the puzzle pieces that we collected this morning. If we were briefing the president, we would say that with a modest degree of confidence, we are living through the early stages of an energy revolution.

But this time, it's not about oil. It's about minerals. And if America doesn't control those minerals, well, history tells us that there will be a scramble by world powers to figure out who does. And usually, historically, that has meant at some point American boots will be on the ground in some of these strange foreign places, all to secure strange sounding minerals like cobalt and lithium and tantalum. Now, in any good assessment, you have to say how you could be wrong. So in this case, for instance, maybe America will start mining lithium or cobalt to make sure that we are energy independent. although I doubt it, not in any sort of sufficient way. To refresh our memories on that,

I briefed you on environmentalists around the United States who are suing to stop the development of those mines in places like Nevada, Oregon, and the Carolinas. But maybe my assessment could also be wrong for another reason. Maybe somebody out there invents a new kind of battery with a new kind of chemistry that doesn't require lithium and cobalt or nickel. And that's possible. There have been failed attempts to do just that, but maybe next time it'll work.

And yet, in the meantime, we're stuck with the batteries and the technology and the chemistry that we've got. And that means that these countries that we've just talked about with their mineral cartels or their wars over those minerals, well, they will have an outsized influence on the powering of America. So are we ready for that? do we even understand that that is a possibility well you do you get to use this knowledge now to start conversations with friends and family and policy makers and that's the important part you get to show up to the tables of power if you want and be informed about risks and opportunities of the renewable revolution you can use your voice and your vote to shape how far down the road we should go with this

dirty green revolution. And friends, from where I'm sitting this morning, that is the power of this podcast. That is the power of all the things that we talk about on the PDB. It's about giving you the power to run your nation. And with that, ladies and gentlemen, we conclude your special morning brief. But I've got one more thing before I let you go. We'll be right back. Kayak gets my flight, hotel, and rental car right,

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Your life deserves music. Your music deserves Bose. Find your perfect product at Bose.com. Welcome back to the PDB folks. I've got one more thing before I let you go. Today's brief was focused on the Renewable Energy Revolution, and it's a revolution that includes the use of electric vehicles. I've got an update on those vehicles this morning,

and I think it's really fascinating when considering today's brief, with all the talk of cartels and wars to secure and defend the supply of things like lithium and cobalt and so forth. So here's that update. Last week, Consumer Reports put out its... assessment of the least reliable cars in America. And what they found was that electric vehicles are among the least reliable cars and trucks on the road. They were in fact the worst performing segment far behind vehicles powered by gas and diesel as well as hybrids. So why is that? Well, according to consumer reports, it's because the technology behind electric vehicles is so new.

And car companies are just trying out different things to, see what sticks. It's sort of an experiment of sorts. Or as consumer reports, senior director of auto testing said, quote, automakers are using electric vehicles as a technological test bed for whatever new technology they want to try out. But by having all this new technology, there's a lot of potential problems with it. By the way, the worst performing electric vehicles were those produced by Chevrolet, GMC, Volkswagen, Jeep, and Mercedes-Benz. Interestingly, Tesla wasn't much better with problems related to body hardware, steering, suspension, air conditioning, heating, paint, and trim. So you may want to keep that in mind if you're considering purchasing a new electric vehicle.

Because despite these problems flagged by consumer reports, they're not cheap. According to Kelly Blue Book, they run on average $17,000 more than a gas or diesel-fueled car. although, to be fair, you can pick up cheaper models. But then again, you kind of get what you pay for. And given the latest information out of consumer reports, that might not be very much. And that, ladies and gentlemen, concludes your morning brief. As always, we close out the show,

reminding each other of why we are here, talking about our country and our world. It's the creed of every good spy and every smart American. It's from John, Chapter 8, verse 32. And you shall know the truth. And the truth shall make you free. Good day. Yamava Resort and Casino at San Manuel

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