Washington, D.C.—In response to remarks made by President Joe Biden during his visit to Ford’s Dearborn factory today, SAFE President and CEO Robbie Diamond made the following statement:
“China is currently the runaway leader in the EV and battery industries, and President Biden is correct to define this as an issue of American economic prosperity and job security. It is encouraging to see the White House view this transition in these terms, and to compete by maximizing our advantages in EV innovation through scaling up domestic EV manufacturing. If we are to compete with China for EV leadership, we must maximize our advantages in innovation by stimulating investment across the entire supply chain, from mineral extraction and processing to battery manufacturing and EV production.”
Without a robust and comprehensive minerals-to-markets supply chain, the United States risks becoming dependent on Chinese domestic policy for the minerals, materials and components that form the foundation of the technologies that will power our economy in the 21st century.
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 recommended:
- 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.
“The world is shifting away from its dependence on oil, to a connected and electric future that is currently dominated by China. This transition has given us a window to create a transportation system that finally works in our national interest. We must use every tool at our disposal to ensure we take that opportunity. We must therefore compete with China’s considerable influence over every step of the EV supply chain, from minerals to markets, if we hope to realize the strategic and economic benefits of EV leadership,” Diamond concluded.
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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.