In response to today’s reintroduction of the Endless Frontier Act, SAFE President and CEO Robbie Diamond made the following statement:
“SAFE has been at the forefront of identifying the commanding lead China has in the race to the new transportation and energy future. Beijing’s considerable influence over every step of the EV supply chain necessitates the United States having a minerals to markets strategy and the competition is heating up for semiconductors, AI, 5G and autonomy. We commend Senator Schumer, Senator Young, Representative Khanna, Representative Gallagher, and their co-sponsor colleagues for initiating the much-needed bipartisan conversation and policies towards the goal of maintaining our global leadership of the commanding heights of transportation, energy, and related technologies that make our economies run.”
“The Endless Frontier Act’s inclusion of batteries as a specific area of focus for technology development and manufacturing is a key piece of the puzzle to ensure America is not dependent upon China for key technologies that will move our people and goods for decades to come. In addition, the new Supply Chain Resiliency and Crisis Response Program within the Department of Commerce can help to ensure we have a diverse supply chain that is interlinked with close partners and allies, reducing risk to key national security products,” added Diamond.
In the report, The Commanding Heights Of Global Transportation, SAFE found that China controls nearly 70 percent of global electric vehicle (EV) battery manufacturing capacity, while North America has less than 10 percent. This vast control includes:
- Direct or indirect control of 70 percent of the world’s lithium supply, 61 percent of the cathodes and 83 percent of the anodes used in batteries.
- 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 are sold cumulatively in China compared to the United States.
- 421,000 of the 425,000 electric buses worldwide are on Chinese roads.
Diamond concluded, “The global economy is increasingly powered by batteries. The U.S. lags significantly behind China in terms of our battery manufacturing and supply chain. We need a more muscular industrial strategy, from minerals to markets, to make sure we do not get left behind. We look forward to working with the sponsors of the Endless Frontier Act and their colleagues to achieve this goal.”
Contact: Alex Adams | 202.461.2374 | firstname.lastname@example.org
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.