U.S. Treasury Secretary Janet Yellen stated in prepared remarks for an event in Las Vegas on Monday that the country is working to create robust, diversified clean energy supply chains to safeguard its economic security while avoiding the risks presented by over-concentration in a small number of nations.
Yellen will discuss the difficulties of making the switch away from fossil fuels in a significant speech she will give after visiting a union facility where employees are training to work on clean energy projects.
Days before the Inflation Reduction Act (IRA), which includes $500 billion in additional spending and tax credits intended to promote clean energy, lower healthcare costs, and improve tax collections, Yellen’s address is scheduled to be delivered.
Yellen intends to commend the U.S. economy for its continued resiliency while highlighting the significance of important laws like the IRA in aiding in the rebuilding of the country’s manufacturing base and “reduce chokepoints, mitigate disruptions, and protect our economic security.”
As we move away from fossil fuels, she added in Reuters-obtained speech excerpts, “We remain concerned about the risks of over-concentration in clean energy supply chains.” “Today, the production of essential components for clean energy, such as batteries, solar panels, and essential minerals, is concentrated in a small number of countries.”
In a report released earlier this year, the International Energy Agency observed that China had 40% of the world’s production capacity for electrolyzers and at least 60% of the manufacturing capacity for the majority of mass-produced technologies, including solar photovoltaic and wind systems.
The Democratic Republic of the Congo supplied 70% of the world’s cobalt, China supplied 60% of the world’s rare earth elements, and Indonesia supplied 40% of the world’s nickel, according to the report. 25% of lithium is mined in Chile and 55% is mined in Australia, according to the report.
In addition to accelerating its own energy transformation, the U.S., according to Yellen, was investing domestically to create more resilient and diverse supply chains.
According to her, “the IRA is assisting in re-shoring some of the production that is essential to our clean energy economy.” The market for American-made sustainable energy technologies could increase if these transitions are accelerated. It can strengthen the world’s supply chains for renewable energy.
The International Brotherhood of Electrical Workers (IBEW) union’s training facility will host Yellen’s speech.
President Joe Biden and his cabinet are currently on a month-long road trip in an effort to persuade skeptic Americans that their policies are effective in promoting economic growth and addressing global warming. Nevada is expected to be a major battleground state in the 2024 presidential race.
A Reuters/Ipsos poll conducted last week revealed that many voters who supported Biden in the 2020 election believe the economy has performed poorly and may not support him in the 2024 election despite the fact that the U.S. economy has outrun recession warnings with record-low unemployment, strong wage gains, and better-than-expected GDP growth.
