100-Day Supply Chain Review Provides Crucial Reminder Of The Need To Secure Battery, Critical Minerals Supply Chains

Washington, D.C.—SAFE notes that the 100-day review of U.S. critical minerals, high-capacity battery and semiconductor supply chains, as ordered by the Biden administration in its February 24 Executive Order, provides a timely reminder of the need for the United States to build these supply chains both domestically and with American allies.

Admiral Dennis Blair, former Director of National Intelligence and Chairman of SAFE, said, “The question we must ask is whether the U.S. will mainly be a consumer of batteries for electric vehicles made in China and assembled in America, or whether those products will be made in the U.S. with the accompanying industry, prosperity, and jobs? President Biden is right to note that we cannot electrify just by purchasing batteries and their components made in China. We must make all the components and process the underlying minerals here at home or with allied countries.”

General James Conway, the 34th Commandant of the U.S. Marine Corps and co-Chair of SAFE’s Energy Security Leadership Council, said, “The bipartisan focus of the Administration and Congress on not just electrification, but ensuring the U.S. reindustrializes and starts making the underlying components here and with allies is farsighted. Now is the time for bipartisan compromises and action in that direction. Today, China exerts vast control over every step of the battery supply chain. If we do not build a supply chain beyond Chinese influence, the United States risks becoming reliant on CCP decisions in Beijing.”

Robbie Diamond, the President and CEO of SAFE, said, “The shift away from a dependence on oil holds tremendous promise for U.S. energy security, prosperity, and an environmentally low-carbon future, but it can only be as secure as the supply chains that feed this electric future. We must not allow the Chinese chokehold on the materials, components and vehicles that will power our 21st century economy to continue.”

In September, SAFE released The Commanding Heights Of Global Transportation, a comprehensive report that assessed China’s vast control of the global EV and battery supply chain, with detailed recommendations to counter Chinese leadership in these emerging industries. Analysis commissioned by SAFE also recently concluded that competing with China across the entire supply chain would create 647,000 jobs.

Among the proposals, SAFE recommends:

  • Scaling up the funds available for the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) programs, and expand them to include medium- and heavy-duty EVs, AVs, and component manufacturing.
  • Expanding and reforming the 30D light-duty EV tax credit, and create equivalents for medium- and heavy-duty electric vehicles.
  • Reviving the 48C Advanced Manufacturing Tax Credit, which provided a 30 percent tax credit to re-equip, expand, or establish domestic clean energy manufacturing facilities. In reinstating this credit, Congress should expand product eligibility to include AV technologies and other emerging transportation technologies.
  • Creating a domestic cooperative for the rare earth supply chain. Rare earths are vital for EV motors, U.S. defense systems and a variety of other high-tech applications, but approximately 90 percent of the global rare earths supply chain is based in China.


About SAFE

SAFE enhances the nation’s energy security and supports our economic resurgence and resiliency, by advancing transformative transportation and mobility technologies and ensuring that the United States secures key aspects of the technology supply chain to achieve and maintain our strategic advantage.

In partnership with the Electrification Coalition, SAFE’s sister organization, we work with consumers, businesses, and policymakers, to launch award-winning “real-world” programs and enable the needed polices to accelerate transportation electrification around the country to reduce our Nation’s dependence on oil.