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February 23, 2022

Biden announces plan to boost investment into domestic supply chains

The news comes roughly a year after the president announced his intentions to make domestic supply chain independence his priority.

By Scarlett Evans

US President Biden yesterday announced that the federal government would be investing millions into the nation’s domestic minerals supply chains, in a bid to reduce reliance on exporters such as China and Australia and improve supply chain resilience. 

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Addressing the press at the South Court Auditorium, the president said that the Department of Defense would be channelling $35m into MP Materials, America’s only rare earth mining and processing operation, to accelerate its operations. The group mines materials such as lithium, graphite, and other rare earth metals, which are used in a host of products from phones to solar panels.  

“Today we’re announcing a major investment in domestic production of key minerals and materials,” Biden said. “China controls most of the global market of these minerals and the fact (is) that we can’t build a future that’s made in America if we ourselves are dependent on China for the materials that power the products of today and tomorrow. And this is not anti-China or anti anything else. It’s pro-American.” 

MP Materials CEO Jim Litinsky said that the investment would “compliment more than $700m that MP will invest by 2024 to create an American rare earth magnetics supply”.  

The announcement comes roughly one year after the president issued an executive order to make strengthening domestic supply chains a priority. Currently, the US imports almost all of its rare earth metals from China, Australia, and Chile — a fact that the Biden administration is looking to change.  

In addition to the MP Materials investment, Biden also highlighted other projects currently underway that are similarly looking to improve supply chains in the US. One such project is a recent partnership between Redwood Materials and car manufacturers Ford and Volvo, working to recycle lithium-ion batteries to close the loop on batteries and limit the need for new mining.  

Companies including Intel, General Motors, and Union Pacific Railroad are also set to build new facilities in America in the coming years.  

Environmental sustainability is also set to inform future mining decisions in the nation so operations can avoid what Biden termed “historical injustices”. 

“We’re working to modernise America’s mining laws and regulations, some of which are 150 years old,” he said.  

Further announcements are anticipated this week from the White House as the administration begins tackling supply chains issues that have plagued the presidency since Biden took office.  

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Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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