ASX battery metal stocks rally after Biden's $430bn climate bill passes US Senate

The US Senate on Sunday passed President Biden's Inflation Reduction Act which plans to pump billions of dollars into climate change and healthcare programs over the next decade.

The bill will introduce US$430bn in new spending, funded by a 15% minimum tax on select large corporations and a 1% tax on share buybacks.

Nearly US$370m will be allocated towards climate and clean energy investments, some highlights include:

• Funding to keep aging nuclear facilities and other sources of low-carbon energy online

• Households could receive up to $7,500 in tax credit to buy an electric vehicle

• A new $27bn 'clean energy technology accelerator' to help advance renewable technologies

• Independent analysis shows the bill, combined with other ongoing emissions reductions, could cut as much as 40% of US greenhouse gas emissions by 2030

• If enacted into law, it would re-establish US credibility in international climate talks

Battery metal stocks get a kick

In some ways, this is like the Fed printing money all over again - except this time, its isolated towards the renewable energy industry.

Local battery metal stocks are trending higher on Monday, in what is otherwise a rather weak day for the broader market.

Notable movers include:

Cobalt

• Cobalt Blue (ASX: COB) 11.9%

• Chalice Mining (ASX: CHN) 4.2%

Lithium

• Core Lithium (ASX: CXO) 3.1%

• Essential Metals (ASX: ESS) 2.0%

Nickel

• Centaurus Metals (ASX: CTM) 4.1%

• IGO (ASX: IGO) 3.3%

Uranium

• Peninsula Energy (ASX: PEN) 10.8%

• Paladin Energy (ASX: PDN) 2.95%

Rare earths

• Lynas (ASX: LYC) 4.6%

Lynas share price chart