Biden administration announces plans to strengthen critical supply chains

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President Joe Biden (C) speaks during a circuit of the Cuyahoga Community College Manufacturing Technology Center, connected May 27, 2021, successful Cleveland, Ohio.

Nicholas Kamm | AFP | Getty Images

WASHINGTON — The Biden medication is acceptable to denote connected Tuesday a bid of steps designed to fortify captious U.S. proviso chains, gathering up home manufacturing capabilities for cardinal products and addressing existing vulnerabilities.

President Joe Biden successful February ordered a 100-day interagency reappraisal of home proviso chains.

The result of this reappraisal and the resulting argumentation recommendations marque up a caller study totaling respective 100 pages, owed to beryllium released connected Tuesday.

The report's archetypal recommendations absorption connected 4 products captious to the U.S. economy: ample capableness lithium batteries, uncommon world minerals, semiconductors and progressive pharmaceutical ingredients.

  • Large capableness lithium batteries: The Department of Energy is aiming to merchandise a 10-year program to make a home lithium artillery proviso concatenation capable of producing the batteries that powerfulness electrical vehicles. The agency's Advanced Technology Vehicles Manufacturing Loan Program volition administer $17 cardinal successful an effort to enactment caller probe and manufacturing efforts successful the United States.
  • Rare world minerals: The Department of Interior volition pb a task unit to place sites wherever critical minerals could beryllium produced and processed successful the United States." The study said the U.S. volition make the capableness for "sustainable production, refining, and recycling" of the 17 uncommon world metals utilized successful cellphones, cars and magnets, portion gathering precocious biology standards.
  • Semiconductors: As the federation grapples with a spot shortage that has idled large car manufacturing plants, the White House said it volition enactment with the backstage assemblage to summation supply-chain transparency.
  • Advanced pharmaceutical ingredients: The Department of Health and Human Services volition usage authorization granted nether the Defense Production Act to perpetrate astir $60 cardinal to "develop caller level technologies to summation home manufacturing capableness for API."

In summation to these steps, designed to boost supplies of circumstantial products, the medication besides announced respective broader initiatives.

To assistance bid the workers that volition beryllium needed to unit these caller projects, the White House volition denote $100 cardinal successful further grants to enactment state-led apprenticeship enlargement efforts. The grants volition beryllium administered by the Department of Labor. 

The Department of Energy volition denote a caller argumentation that requires awardees of DOE probe and improvement grants to "substantially manufacture those products successful the United States."

Along with these efforts to bolster home proviso chains, the Biden medication volition besides denote caller steps to combat "unfair overseas commercialized practices," which it says person contributed to the erosion of proviso chains astir the world.

One of these volition beryllium the instauration of a "trade onslaught force" led by the U.S. Trade Representative's office. The onslaught unit volition purpose to place "unilateral and multilateral" enforcement actions the United States tin instrumentality to punish countries that it believes are engaging successful unfair commercialized practices. According to a elder medication official, the onslaught unit volition absorption connected processing U.S.-China commercialized policies.

The different enforcement-related enactment volition beryllium an evaluation, led by the Department of Commerce, of whether to initiate an probe into neodymium magnets nether Section 232 of the Trade Expansion Act.

The uncommon world magnets are utilized successful motors and electronics by civilians and the military. If the probe were to reason that U.S. nationalist information is threatened by overseas supplies of neodymium, it could unfastened the doorway to import restrictions oregon tariffs. 

Then-President Donald Trump invoked Section 232 twice, citing it arsenic his justification for imposing wide alloy and aluminum tariffs. Those tariffs are inactive successful place, and Biden has not said whether helium volition assistance them. 

A elder medication authoritative who briefed reporters connected information of anonymity ahead of the ceremonial announcement emphasized that Biden's commercialized argumentation actions are fundamentally antithetic from Trump's commercialized wars due to the fact that they are cautiously targeted. 

"We're not looking to wage commercialized wars with our allies and partners," said the official. "We're looking astatine precise targeted products wherever we deliberation determination are effectual tools we could deploy to fortify our ain proviso chains and trim vulnerabilities."