To mitigate supply chain disruptions involving critical materials and improve the resiliency of American industrial sectors, President Biden will require the US government to produce unclassified assessments of key industries and their supply chains, including semiconductor manufacturing, electric car batteries, medical supplies, and rare earth elements such as the ones used in iPhones, lasers and military systems.
The Biden administration will order a 100-day review of the supply chain in light of threats — such as pandemics, cyberattacks and extreme weather events — that could pose a risk to accessing essential goods. Specifically, Biden is directing the executive branch to take a closer look at the semiconductor manufacturing industry; high-capacity batteries, including those used for electric cars; rare earth materials; and medical supplies.
China is a strong competitor in these sectors. For example, in the past decade, China accounted for more than 90 percent of production and supply of rare earth elements used in products ranging from iPhones to lasers, according to a 2017 U.S. Geological Survey.
As part of this review, strategies will be developed and implemented to improve the essential goods supply chain, with recommendations about creating new capabilities to mitigate supply chain disruptions and methods to enhance the resiliency of American industrial sectors.