The United States Invests in Strengthening Electric Vehicle Supply Chains

The United States government, under the leadership of the Biden Administration, is undertaking measures to enhance the resilience of critical supply chains through a series of initiatives focused on supporting the manufacturing of electric vehicles (EVs) and batteries, as well as promoting sustainability in logistics.

To accomplish these objectives, the Department of Energy (DoE) is allocating $250 million to its Advanced Energy Manufacturing and Recycling Grant Program, with a specific focus on establishing clean energy supply chains in areas affected by coal mine or power plant closures. This initiative encompasses the localised production of essential materials and components for grid-scale batteries and EVs. Furthermore, the DoE is providing $10 million for a “critical material accelerator” and offering a £5.6 million prize to foster the development of circular clean energy supply chains. These efforts build upon the DoE’s £3.5 billion investment through the Bipartisan Infrastructure Law, which aims to enhance domestic production of advanced batteries and battery materials necessary for EVs and energy storage.

In recent years, the US government has introduced several pieces of legislation, including the Bipartisan Infrastructure Law, the Chips and Science Act, and the Inflation Reduction Act (IRA), all of which converge to support sustainable supply chains and align with environmental priorities in vehicle production.

The DoE is also in the process of developing an assessment tool to evaluate raw materials, manufacturing processes, workforce capabilities, and logistics.

Simultaneously, the Department of Commerce (DoC) is collaborating on a cross-government supply chain data-sharing plan and has established a Supply Chain Centre to leverage industry expertise and data analytics for the development of supply chain risk-assessment tools. The DoC’s efforts involve conducting in-depth analyses of select critical supply chains to enhance their resilience.

Furthermore, the DoC is working in conjunction with the Department of Homeland Security to reinforce the semiconductor supply chain and further implement the Chips and Science Act, which provides approximately £280 billion in new funding to bolster domestic research and manufacturing of semiconductors in the US.

The Department of Transportation (DoT) has introduced the Freight Logistics Optimization Works (Flow) programme, a public-private partnership aimed at ensuring the reliable movement of goods. Participants are beginning to utilise Flow data to inform their logistics decision-making, thereby contributing to the avoidance of bottlenecks, shorter lead times for customers, and a more resilient and globally competitive freight network through the early detection of supply chain disruptions.

Moreover, the DoT has established the Office of Multimodal Freight Infrastructure and Policy, which is tasked with maintaining and improving the nation’s multimodal freight network. This includes the development of the National Multimodal Freight Network, the review of State Freight Plans, and the continued advancement of the Flow initiative in partnership with the Bureau of Transportation Statistics.

In the realm of manufacturing, the DoE’s Office of Energy Efficiency and Renewable Energy, along with the Advanced Materials and Manufacturing Technologies Office, is sponsoring a study by the National Academies of Science, Engineering, and Medicine to develop a nationwide plan for smart manufacturing. This initiative aims to identify key investment priorities to bolster new digital and artificial intelligence technologies, enhancing the productivity and security of critical manufacturing systems that are vital for sustaining domestic supply chains.

Additionally, the DoE has announced £22 million to support 12 state-run programmes geared towards promoting smart manufacturing in small- and medium-sized facilities through the State Manufacturing Leadership Program. This initiative strives to make smart manufacturing technologies and high-performance computing more accessible for use across the domestic manufacturing sector.