A new report totaling several hundred pages, that supports localization and reshoring was released today, recommending immediate and far-reaching action on supply chains involving areas critical to the U.S. economy: large capacity lithium batteries, rare earth minerals, semiconductors and active pharmaceutical ingredients.
Large capacity lithium batteries: The Department of Energy is aiming to release a 10-year plan to develop a domestic lithium battery supply chain capable of producing the batteries that power electric vehicles. The agency’s Advanced Technology Vehicles Manufacturing Loan Program will distribute $17 billion in an effort to support new research and manufacturing efforts in the United States.
Rare earth minerals: The Department of Interior will lead a task force to identify sites where critical minerals could be produced and processed in the United States.” The report said the U.S. will develop the capacity for “sustainable production, refining, and recycling” of the 17 rare earth metals used in cellphones, cars and magnets, while meeting high environmental standards.
Semiconductors: As the nation grapples with a chip shortage that has idled major auto manufacturing plants, the White House said it will work with the private sector to increase supply-chain transparency.
Advanced pharmaceutical ingredients: The Department of Health and Human Services will use authority granted under the Defense Production Act to commit approximately $60 million to “develop novel platform technologies to increase domestic manufacturing capacity for API.”
The recommendations support increased investments, vast improvements to supply chains and less reliance on other countries for crucial goods.