Biden Signs Executive Order to Boost Electric Vehicle Battery Supply and US Auto Supply Chains - McDermott Will & Emery

Biden Signs Executive Order to Boost Electric Vehicle Battery Supply and US Auto Supply Chains

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On Wednesday, US President Joe Biden signed an Executive Order to create more resilient supply chains, with a special focus on supply chains affecting the US auto industry, including electric-vehicle batteries.

The Executive Order requires Biden’s administration to complete a review of critical product supply chains in the United States within 100 days of the date of the Executive Order. The review covers a broad range of supply chains in four areas: (1) semiconductor manufacturing and advanced packaging; (2) high-capacity batteries, including electric-vehicle batteries; (3) critical minerals and other identified strategic materials, including rare earth elements; and (4) pharmaceuticals and active pharmaceutical ingredients.

While the United States is a net exporter of electric vehicles, the country is not currently a leader in the supply chain associated with electric battery production. The Executive Order aims to change this and expand domestic battery production. According to the administration, “The United States could better leverage our sizable lithium reserves and manufacturing know-how to expand domestic battery production.”

The Executive Order also calls for the review of six broader supply chains within one year of the date of the Executive Order: (1) defense industrial base; (2) public health and biological preparedness industrial base; (3) information and communications technology (ICT) industrial base; (4) energy sector industrial base; (5) transportation industrial base; and (6) production of agricultural commodities and food products.

The Executive Order is part of the administration’s efforts to secure the supply chains of critical items needed to revitalize our domestic manufacturing capacity. “This is about making sure the United States can meet every challenge we face in this new era—pandemics, but also in defense, cybersecurity, climate change and so much more,” Biden said at the signing of the Executive Order.