US Treasury Secretary Janet Yellen said in prepared remarks for an event that the US is working to build clean, resilient and diversified energy supply chains to protect its economic security, while protecting against the risks posed by excessive concentration in a handful of countries. which will be held Monday in Las Vegas.
Yellen will address the challenges of transitioning away from fossil fuels in a keynote speech after visiting a union facility where workers learn techniques for working on clean energy projects.
Yellen’s speech comes days before the first anniversary of the Inflation Reduction Act (IRA), which includes $500 billion in new spending and tax breaks aimed at boosting clean energy, lowering healthcare costs and increasing tax revenue.
Yellen is set to praise the continued resilience of the US economy, while highlighting the importance of key legislation such as the IRA to help rebuild America’s manufacturing base and “reduce bottlenecks, mitigate disruptions and protect our security.”
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Treasury Secretary warns of risks in clean energy supply chains
“As we move away from fossil fuels, we remain concerned about the risks of excessive concentration in clean energy supply chains,” he said in excerpts of the letter obtained by Reuters. “Today, production of critical clean energy inputs — from batteries to solar panels to critical minerals — is concentrated in a few countries.”
A report from the International Energy Agency earlier this year indicated that China has at least 60% of the global manufacturing capacity for most mass-produced technologies, such as solar photovoltaic and wind systems, and 40% of the electrolyzer manufacturing.
The Democratic Republic of the Congo supplies 70% of the cobalt, China 60% of the rare earth elements, and Indonesia 40% of the nickel. Australia accounts for 55% of lithium extraction and Chile 25%.
The comments, to be made in Nevada, a likely coastal state in the 2024 presidential election, are part of a month-long campaign by President Joe Biden and his government to convince skeptical Americans that his measures boost economic growth and fight global warming. .
The US economy has left behind recession warnings with record low unemployment, strong wage gains and better-than-expected GDP growth, but many voters who supported Biden in 2020 believe the economy has been bad and may not vote for him in the 2024 election, according to According to a Reuters/Ipsos poll last week.
With information from Reuters.