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President Biden Executive Order Supports “High-capacity Batteries,” Electric Vehicles

President Biden signed an Executive Order (EO) on February 24, 2021 instituting a formal, national strategy to develop more resilient and secure supply chains across the U.S. The EO calls for a comprehensive review of domestic production, research and development capabilities, and the formulation of strategies to strengthen “critical sectors.” One of the critical sectors specifically identified in the EO is “high-capacity batteries, such as those used in electric vehicles.” (The other sectors include pharmaceutical ingredients (APIs), critical minerals and rare earth elements, and semiconductors.)

The Secretary of Energy will be responsible for preparing, in consultation with the heads of other federal agencies, a report identifying risks in the supply chain for high-capacity batteries and policy recommendations to address these risks. The report is intended to address a lengthy list of issues including, but not limited to:

  • the critical goods and materials underlying the supply chain;
  • the manufacturing or other capabilities necessary to produce the materials, including emerging capabilities;
  • the risks or other contingencies that may disrupt, strain, compromise, or eliminate the supply chain; and
  • the resilience and capacity of American manufacturing supply chains and the industrial and agricultural base to support national and economic security and emergency preparedness.

PRBA will be closely monitoring the developments resulting from this EO since it could result in changes to domestic and international trade policy and federal laws and regulations.  For more information, contact George Kerchner at 202.719.4109 or [email protected].