US Must Not Rely on Single Source for Critical Materials: Business Roundtable

Relying on single sources for critical materials, is never a good idea. But in the current climate of geopolitical risk, most importantly U.S.- China relations, it's an especially bad idea.

This conclusion is part of a report released on July 22 by the Business Roundtable, “Resilient, Diverse and Secure: Improving Critical Supply Chains" outlines policy recommendations for strengthening and securing critical supply chains.

“Securing and diversifying supply chains across our major industries is vital to protecting America’s workers, the economy and our national interests,” said David A. Ricks,  CEO of Eli Lilly and Company and At-Large Member of the Business Roundtable Board of Directors, in a statement. “America must not overly depend on a single supply source or country. We need a more targeted approach to policy solutions that mitigates this risk, which in turn will enhance supply chain resilience, promote growth and bolster American competitiveness.”

The five strategically significant supply chains examined in the report include:

• Critical Minerals
• Synthetic Active Pharmaceutical Ingredients (APIs)
• Agrochemicals (e.g., crop protection)
• Printed Circuit Boards (PCBs) and Printed Circuit Board Assembly (PCBA)
• Foundational Semiconductors

The report also includes recommendations in four policy areas that underpin supply chain resiliency:

• Trade: Deepen economic integration through trade and investment agreements with priority partners that can serve as alternative sources for critical inputs, alternative platforms for manufacturing and processing, and alternative markets for U.S. goods and services in the face of geopolitical risk.
• Tax: Maintain a competitive tax code in the United States that ensures businesses continue prioritizing the United States as the primary location to create jobs.
• Workforce: Modernize the public workforce development system to ensure investments are preparing workers for in-demand careers, expanding economic opportunity for all Americans and complementing businesses’ efforts to build a world-class, “ever-ready” U.S. workforce.
• Regulation: Streamline regulatory frameworks and permitting processes for critical supply chains to expedite market entry, foster innovation and promote resiliency.