The Covid-19 pandemic is blocking US efforts to increase the yield of lithium and a number of rare materials used in the production of electric vehicles and high-tech equipment. This strikes President Donald Trump’s plan to control China’s control over the strategic minerals sector.

Against the background of the rapid spread of the pandemic, US mining companies have delayed their operations, as well as environmental reviews and new loans.

“We can just pause”, said Keith Phillips, CEO of Piedmont Lithium Ltd, a North Carolina-based mining company.

Piedmont Lithium Americas Corp and Rioneer Ltd, which develops projects in Nevada, said they now face engineering or regulatory difficulties that could hamper the construction of new mines.

Most companies focused on strategic minerals in the US have large cash reserves from stock exchanges. Although none of the businesses have yet reported the presence of coronavirus among employees, the infection still raised concerns among their executives.

The pandemic is just the most recent headache for the lithium industry. Metal prices have dropped 37% over the past year due to concerns about oversupply, according to Benchmark Minerals Intelligence.

As the US government focuses its focus on the coronavirus, projects for the extraction of rare minerals remain pending. US industry companies fear the virus may delay the Pentagon’s decisions indefinitely. MP Materials, which operates the only rare minerals mined in the United States, continues to operate despite relying on China to finish the production.

In 2019, the Pentagon said it would fund the development of mines using the Defense Production Act, which gives the military the right to supply certain equipment. President Trump recently turned to the same law to encourage the production of medical supplies.

Medallion Resources Ltd and USA Rare Earth and Texas Mineral Resources Corp are also waiting in the Pentagon, and it is unclear at this time how the situation may develop.