Biden announces 30 actions to strengthen supply chains

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President Joe Biden convened the first meeting on Monday of the new Supply Chain Resiliency Council, which announced 30 measures to strengthen logistics across the country.

What you need to know

  • President Joe Biden announced a series of measures to strengthen domestic and international supply chains
  • The move comes after pandemic-era supply chain disruptions contributed to several years of high inflation.
  • A large part of the measures concern domestic renewable energy supply chains

The move comes in 2021 as the country struggles to recover from the coronavirus outbreak after supply chains suffered from inflation. They have energy value. It decreased by 4.5 percent It still contributes to overall inflation, as did the consumer price index last year, which could pose a political challenge for Biden heading into the 2024 presidential election.

Of the 30 actions taken to strengthen supply chains, at least 11 specifically address domestic renewable energy supply.

Improves the federal government’s ability to manage energy resources and share information across agencies.

The government is investing $275 million to create a new clean energy supply chain for communities affected by the closure of coal mines or coal-fired power plants. The measure builds on clean energy manufacturing hubs like New Albany and Akron, Ohio, where federal grants support new semiconductor factories. Semiconductors are used in many electronic devices, including solar panels and electric vehicles.

“This agreement will help us identify supply chain bottlenecks before they become the full-scale disruptions we saw during the outbreak. We all saw what happened then: Semiconductor supply chains from Asia to the US were shut down,” President Biden said in a press conference on supply chain measures.

But officials have warned that the United States relies heavily on rare earths from China to build more semiconductors.

According to data from the US Geological Survey, China supplies 100% of US supplies. Gallium and graphite from the ore, and 50% of the country’s germanium supply. All three minerals are used in clean energy technologies.

The House Energy and Commerce Committee published last week Letter Stating that China has begun cutting off US access to certain elements such as critical minerals such as gallium, germanium and phosphate, “these countermeasures by China are a direct threat to our national security and energy security.”

Ohio Representative Bill Johnson has expressed concern that federal rules to accelerate the transition to green energy could disrupt more energy supply chains.

EPA regulations pose a very real threat to the affordability and reliability of our electric grid. “We continue to hear from the state’s utilities and grid operators that the grid is experiencing reliability issues,” Johnson said at a hearing earlier this month.

Biden administration officials say transitioning to domestic clean energy is the only way to ensure the electricity grid is reliable in the long term.

“We have to depend on fluctuating energy prices, especially when most of the current energy supply is not coming from the United States, but coming from around the world,” said Daniel Hornung, deputy director of the National Economy. Council.

The supply chain reforms announced by Biden include areas such as freight logistics, domestic food delivery and access to critical medicines.



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