"President Joe Biden’s latest executive order seeks to secure a variety of important supply chains.
... rare earths supply has long been a point of concern for the US, particularly the Pentagon.
... The White House said the order focuses on six key areas:
the defense industrial base
the public health and biological preparedness industrial base
the information and communications technology (ICT) industrial base
the energy sector industrial base
the transportation industrial base
supply chains for agricultural commodities and food production
... the order calls for a 100-day review related to supply chain vulnerabilities for four key products:
APIs, or the active ingredient in pharmaceutical products
semiconductors
critical mineral
large capacity batteries, like those used in electric vehicles
... Among the supply chains in question, as mentioned, is that of rare earths.
“Critical minerals are an essential part of defense, high-tech, and other products,” the White House said.
“From rare earths in our electric motors and generators to the carbon fiber used for airplanes—the United States needs to ensure we are not dependent upon foreign sources or single points of failure in times of national emergency.”
In January, the US took a small step toward that goal with the signing of a deal with Australia’s Lynas Rare Earths Ltd.
The Australian rare earths firm will build a light rare earths separation facility in the US.
Lynas is the largest rare earths company outside of China.
The lack of domestic processing capability leaves the US exposed ...
“The US even sends its ores to China for refining ... the US simply lacks the facilities.
... China is more willing to tolerate the environmental damage from the dreadfully polluting refining process.
... the latest supply chain challenge impacting US businesses is the semiconductor shortage.
... the shortage is impacting the automotive sector, in particular.
... The latest executive order highlights the semiconductor shortage and its impact on automotive operations (and, in turn, on US workers).
“The United States is the birthplace of this technology, and has always been a leader in semiconductor development,” the White House said.
“However, over the years we have underinvested in production—hurting our innovative edge—while other countries have learned from our example and increased their investments in the industry.”
... the US’s share of global semiconductor manufacturing capacity has declined from 37% in 1990 to 12% today ... "