SAFE Applauds Biden Vehicle Electrification Announcement As Step Toward Competing With China For EV Dominance

Washington, D.C.—In response to President Biden’s announcement to electrify the entire U.S. government vehicle fleet, SAFE President and CEO Robbie Diamond made the following statement:

“The global transportation system is going electric, and the current supply chain is dominated by China. This announcement recognizes the need for America to compete with her biggest strategic rival across the entire supply chain, so we do not become reliant upon policy decisions made in Beijing for the materials, components and vehicles we will rely on to keep our economy moving in the 21st century.”

SAFE’s latest report, The Commanding Heights Of Global Transportation, details the control which China exerts over today’s EV and battery supply chain:

  • China holds direct or indirect control of 70 percent of the world’s lithium supply
  • China produces 61 percent of the cathodes and 83 percent of the anodes used in batteries – the U.S. produces zero percent.
  • China has ownership of 80 percent of the rare earths supply needed for U.S. weapons systems and EVs, and control over the processing of this supply.
  • China produces roughly 75 percent of the permanent magnets that use rare earths, another critical component for EV motors
  • By 2020, 107 of the 142 lithium-ion battery megafactories under construction worldwide are, or will be, located in China. Just nine are planned for the United States.
  • More than twice as many EVs sold cumulatively in China compared to the United States. 421,000 of the 425,000 electric buses worldwide are on Chinese roads.

Diamond added, “This is an encouraging shot in the arm for the U.S. EV market, and is a welcome step toward creating the demand needed to develop a domestic minerals-to-markets supply chain for EVs and batteries. We cannot have a thriving domestic supply chain if there is no demand, and this order is a signal of intent toward creating tomorrow’s EV industry here in the United States.”