The Department of Energy Releases a Groundbreaking Strategy to Protect America’s Clean Energy Supply Chain

Hoping to one day overtake Norway as the world’s largest clean energy producer and to join the small group of countries who have achieved net zero greenhouse gas emissions, the U.S. has set some ambitious goals for itself. In fact, the United States has committed to achieving 100% clean electricity production by 2035 and attaining net zero gas emissions by 2050. From where it ranks currently in both these categories, meeting these lofty goals will require not only a sizeable investment in clean energy technologies but also a massive increase in both its domestic and international supply chains.

During his first 90 days in office, President Biden signed Executive Order 14107,which directs several federal agency actions to secure and strengthen America’s supply chains. In response to this Executive Order, on February 24, 2022, the Department of Energy (DOE) issued a report titled “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,” outlining the DOE’s comprehensive plan to scale-up the Energy Sector Industrial Base (ESIB).

In their report, the DOE summarizes the critical pieces of both domestic and international energy supply chains, evaluates the key clean energy technologies, and outlines a proposed plan that the American government should implement to bolster and stabilize domestic clean energy supply chains. The DOE expects the global clean energy market will grow exponentially to reach $23 trillion “at a minimum” by 2030.

While their report outlines over sixty actions to enhance America’s clean energy supply chain, the report categorizes common threats, risks, and weaknesses into seven overall categories, which include:

  1. Making domestic raw materials more available, including cobalt for batteries and rare earth elements like neodymium for offshore wind.
  2. Growing America’s domestic manufacturing capabilities through increased funding for workforce deployment, investing in manufacturing programs that support this clean energy transition, and creating state, local, and tribal clean energy industrial clusters.
  3. Pumping money into the creation of newer but still dependable international supply chains to meet the world’s climate goals.
  4. Increasing the acquisition and distribution of clean energy.
  5. Improving end-of-life waste management by advancing technologies to recycle and recover valuable materials such as batteries, aluminum, and steel.
  6. Fostering and building a skilled American workforce for the switch to more clean energy production; and
  7. Improving supply chain knowledge and decision-making.

As the U.S. government kickstarts implementation of the Bipartisan Infrastructure Law, which provides for $62 billion in additional energy sector funding, the Report summarizes how America can capture the economic opportunity inherent in the energy sector transition and build a world-class US energy manufacturing base and workforce.

“Taking bold action to invest in our supply chains means America will reap the tremendous opportunities that tackling climate change presents to kickstart domestic manufacturing and help secure our national, economic, and energy security,” said Jennifer M. Granholm, U.S. Secretary of Energy.

“The strength of a nation relies on resilient and reliable critical supply chains across sectors, and DOE’s report provides the key strategies and recommendations for Congress and the Federal government to act now to help deliver more jobs and a stronger, cleaner future.” 

The report not only highlights the dozens of specific actions that the DOE is already taking or commits to taking, but it details a whole-of-government approach to the nation’s energy supply chain challenges and opportunities. The strategies described in the Report lay out inter-agency collaboration on efforts such as small business loans, foreign investment in U.S. manufacturing, community engagement on mining for critical minerals, and port infrastructure to handle energy product shipping.

Finally, the report also lays out over 20 recommendations that Congress can act on related to America’s energy supply chain, including:

  • Creating legislation to give tax incentives for the building of new facilities and for the continual operation of those facilities that support domestic clean energy creation and implementation.
  • Earmarking money to the DOE to use Title III of the Defense Production Act in partnership with President Biden.
  • Earmarking money to create both regional and state-level sector partnerships and Registered Apprenticeships to hire, train, and employ workers into careers needed for domestic supply chains.

The report lays out an extensive list of steps to tackle weaknesses in the global supply chain, many of which will require both coordination and management to meet the U.S.’s ambitions climate change goals.