RECSI - Using Defense Production Act to spur Local Manufacturing

FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing
JUNE 6, 2022
Today’s clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate. From day one, President Biden has mobilized investment in these critical technologies. Thanks to his clean energy and climate agenda, last year marked the largest deployment of solar, wind, and batteries in United States history, and our nation is now a magnet for investment in clean energy manufacturing.

Since President Biden took office, the private sector has committed over $100 billion in new private capital to make electric vehicles and batteries in the United States. We have made historic investments in clean hydrogen, nuclear, and other cutting-edge technologies. And companies are investing billions more to grow a new domestic offshore wind industry.

We are also now on track to triple domestic solar manufacturing capacity by 2024. The expansions to domestic solar manufacturing capacity announced since President Biden took office will grow the current base capacity of 7.5 gigawatts by an additional 15 gigawatts. This would total 22.5 gigawatts by the end of his first term – enough to enable more than 3.3 million homes to switch to clean solar energy each year.

While President Biden continues pushing Congress to pass clean energy investments and tax cuts, he is taking bold action to rapidly build on this progress and create a bridge to this American-made clean energy future. Today, President Biden is taking action to:

- Authorize use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies, including solar panel parts;

- Put the full power of federal procurement to work spurring additional domestic solar manufacturing capacity by directing the development of master supply agreements, including “super preference” status; and

- Create a 24-month bridge as domestic manufacturing rapidly scales up to ensure the reliable supply of components that U.S. solar deployers need to construct clean energy projects and an electric grid for the 21st century, while reinforcing the integrity of our trade laws and processes.

Together, these actions will spur domestic manufacturing, construction projects, and good-paying jobs – all while cutting energy costs for families, strengthening our grid, and tackling climate change and environmental injustice. With a stronger clean energy arsenal, the United States can be an even stronger partner to our allies, especially in the face of Putin’s war in Ukraine.

The stakes could not be higher. That is why President Biden also continues to urge Congress to quickly pass tax cuts and additional investments that advance U.S. clean energy manufacturing and deployment. Failing to take these actions would deny consumers access to cost-cutting clean energy options, add risks to our power grid, and stall domestic clean energy construction projects that are critical to tackling the climate crisis. At the same time, President Biden will keep using his executive authority to take bold action to build an American-made clean energy future.

BREAKING: Biden Admin set to pause new solar tariffs for two years´
JUNE 6, 2022
According to reports, alongside the moratorium on new tariffs, President Biden will invoke the Defense Production Act as a means to accelerate American manufacturing across the solar supply chain and alleviate overall dependency on imported PV hardware and materials. Reports indicate that the goal of invoking the act is to raise domestic solar manufacturing capacity to 22.5 GW by 2024.

Enacted in 1950, the Defense Production Act allows the President to to direct private companies to prioritize orders from the federal government and allocate materials, services, and facilities for the purpose of national defense. The order has been invoked twice since the beginning of 2020, once by then-President Donald Trump and again by Biden, in response to the Covid-19 pandemic.

Invoking the Act will not end the DOC investigation, which is expected to continue, meaning that tariffs could still be imposed after the moratorium, depending on DOC’s ruling. However, according Reuter’s unnamed source, the impending action would eliminate the possible imposition of retroactive tariff collection, which could have gone as far back as the date of Auxin Solar’s initial petition filing.

Biden Plans Solar Manufacturing Push to End Project Slowdown
JUNE 6, 2022

Biden to waive Southeast Asia solar import tariffs for two years
JUNE 6, 2022

Exclusive: Biden to waive tariffs for 24 months on solar panels hit by probe
JUNE 5, 2022
Redigert 06.06.2022 kl 18:17 Du må logge inn for å svare
07.06.2022 kl 13:41 5933

STATEMENT: Roosevelt Institute Industrial Policy Director Responds to Biden Administration’s Executive Action Invoking the Defense Production Act to Jumpstart Our Clean Energy Transition
JUNE 6, 2022
NEW YORK, NY — Today, the Biden administration made an unprecedented announcement declaring an emergency for electricity supply and unleashing the powers of the Defense Production Act (DPA) of 1950 to help build the green industries of the future.

Powers similar to those authorized by the DPA have been on the books since Franklin D. Roosevelt’s administration, but they have not been invoked in such a robust manner since the Korean War—if not World War II—and never for robust climate action. This announcement signals that the public sector has a vital role to play in solving collective problems through substantial investment and through steering and structuring markets.

In response to this news, Todd Tucker, Roosevelt Director of Industrial Policy and Trade, shares the following reflection:

“For decades, policymakers have put their faith in markets and multinational corporations. The result has been the offshoring of industries like solar that are needed for the green transition, putting the public in dangerous dependence on sources like China. Today’s invocation of the Defense Production Act represents a historic acknowledgement of the climate crisis by the federal government, and a fundamental pivot by the United States toward a clean energy transition that creates good jobs here at home.”

The federal government must continue to use all levers of public power to serve the public good.

You can learn more about how DPA powers can be utilized to this end in Tucker’s previous analysis.
07.06.2022 kl 19:26 5454

Biden Administration takes unprecedented action on solar panel imports
JUNE 7, 2022
First, President Biden declared a national emergency with respect to the reliability of the nation’s electric grid. In conjunction with the declaration of emergency, the President invoked his emergency authority under section 318(a) of the Tariff Act of 1930 to authorize the Secretary of Commerce, in consultation with the Secretaries of Treasury and Homeland Security, to permit, for the next 24 months, duty free entry of solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam so long as such solar cells and modules are not already subject to antidumping or countervailing duties. In a separate, but related action, the President also issued a memorandum under section 303(a)(5) of the Defense Production Act making three findings:

solar modules and components are critical technology items essential to the national defense;
without federal intervention, private industry will not be able to provide necessary quantities of this technology in a timely manner; and
government purchases of the technology are the most cost effective method of meeting the need.
These findings will allow the Biden Administration to use federal funds to move toward its stated goal of tripling domestic solar manufacturing capacity from 7.5 GW per year to 22.5 GW per year by 2024.

Today’s moves were triggered by the Department of Commerce’s (Commerce) ongoing circumvention investigations of solar panels from Southeast Asia. The investigations are a response to a petition submitted by domestic solar panel manufacturer Auxin Solar. In its petition, Auxin alleged that modules and components shipped from Cambodia, Malaysia, Thailand, and Vietnam should be treated as having been sourced from China and therefore be subject to the existing antidumping duties on Chinese solar modules and components. An affirmative finding by Commerce would require the imposition of additional duties on modules and components from those four countries. Domestic solar project developers have asserted that such duties could reduce solar deployment by up to 16 GW per year and result in the loss of 70,000 solar jobs. Today’s Presidential actions do not suspend the ongoing investigations, which legally must continue, but on their face would potentially temporarily nullify the consequences of affirmative determinations.

It will be important to monitor the reactions of Auxin and other domestic manufacturers to today’s news. If they decide not to challenge the Administration’s action, the Biden Administration may have struck a workable compromise between different interests of the solar industry. If they are not supportive, then today’s action could result in a lengthy battle in the courts and further uncertainty.
07.06.2022 kl 19:28 5432

It’s great to see that the Administration recognizes the importance of domestic solar manufacturing and is taking the steps needed to support it, such as invoking the Defense Production Act. This creates a window of opportunity for solar buyers to actively support the expansion of domestic solar manufacturing through their buying practices and policy engagement.

There is a lack of adequate wafer capacity to utilize the 78GW of low-carbon polysilicon capacity outside of China, including in the US. This is a critical area of need. Fortunately, investments are growing in this space. Accelerating these developments should be a critical element of the Administration’s efforts.

Thanks John Engel for including us on the Factor This podcast and to Rhone Resch and Martin Pochtaruk for sharing their insights.
08.06.2022 kl 08:12 4303

Tenker på disse 15GW som er nevnt i meldingen.
Husker ikke helt, men kunne sikkert lett meg frem her på forumet, men satser på at noen har tallene i hodet.

Om HS tar ut full kapasitet av poly fra ML, hvor mange GW vil da denne poly produksjonen tilsvare årlig?
08.06.2022 kl 08:53 3962

Solar-Panel Makers Scorn ‘Pittance’ of Aid in Biden Relief Plan
JUNE 8, 2022

President Joe Biden’s plan to kick-start domestic solar-panel manufacturing depends for now on a federal fund with less than a half billion dollars that’s already being tapped to pay for products including military drones and baby formula.

That funding—even if fully dedicated to solar production—would only be enough to open a few factories capable of cranking out a fraction of the panels the US currently imports each year, according to manufacturers.

Biden’s plan blindsided domestic manufacturers, which immediately rebuked the initiative. Samantha Sloan, vice president of policy at First Solar Inc., said the measures fell well short of the kind of industrial policy that’s needed to truly marshal domestic manufacturing. “We have yet to see this administration put action behind word in supporting US solar manufacturing specifically,” she said. “That causes some heartburn on where the priorities do lie.”

A new manufacturing plant with the capacity to churn out 1.4 gigawatts of modules each year could cost around $170 million, according to industry estimates and the coalition. That would hardly compete with the 24 gigawatts the US imported last year, Iacovella said.

And the figures pale in comparison to the potential cost of new factories to produce polysilicon, a key ingredient in panels. A new plant producing 20,000 tons of polysilicon per year would easily cost $1 billion, according to BloombergNEF.

Bank of America described Biden’s manufacturing move “more as rhetoric,” in a research note Tuesday. “Feedback from various parties across the sector suggests it’s not a silver bullet.”

US solar advocates are still pushing for an array of help from Congress, including expanded tax credits for renewable power projects and measures to encourage clean energy manufacturing. “We view the Defense Production Act as a down payment on manufacturing, planting seeds for long-term growth,” said John Smirnow, general counsel of the Solar Energy Industries Association.
Redigert 08.06.2022 kl 08:54 Du må logge inn for å svare
08.06.2022 kl 08:56 3912

Jeg tror dette vil fremskynde oppstart av ML. May nevnte at de med oppstart i Q4 23 har tatt forbehold om fortsatt forsyningskrise og skvis på tilgang til duppeditter til produksjon. Det Biden administrasjonen nå gjør vil lette på tilgangen rundt dette til USA.
Vil ikke bli overrasket om de på Q2 rapporten gir signaler om enda tidligere oppstart!
08.06.2022 kl 08:56 3911

omac skrev 6
Medregnet de råvarene HS også nå skal kjøpe fra OCI, så nærmer de seg 15 GW kapasitet😎
08.06.2022 kl 08:58 3868

And the figures pale in comparison to the potential cost of new factories to produce polysilicon, a key ingredient in panels. A new plant producing 20,000 tons of polysilicon per year would easily cost $1 billion, according to BloombergNEF

Om ikke enda mer med dagens råvarepriser.
08.06.2022 kl 09:41 3635

Hanwha Q Cells, OCI to benefit from U.S. tariff waivers of SAE solar panel imports
JUNE 7, 2022
With the tariff reprieve, Korean companies may lose their competitive edge in the solar panel market in the short term, except Hanwha Q Cells and OCI that have photovoltaic factories in Malaysia.

Hanwha Q Cells, the solar energy unit of Hanwha Solution, has two plants in Malaysia with a production capacity of 2.3 gigawatts (GW) solar cells and modules while polysilicon manufacturer OCI is currently ramping up the production capacity of its Malaysia plant from the current 30,000 tons to 35,000 tons.

In the long run, the U.S. move is expected to expand the overall solar energy market in the U.S. and the world, which could be beneficial to Korean photovoltaic companies.
08.06.2022 kl 09:53 3524

Herlig, Manman:)
Og jeg som var en dem som hadde fremmedfrykt når Hanwha kom inn som eier i REC...
Skal være så ærlig og si at der tok jeg feil, gitt:)
08.06.2022 kl 10:02 3439

1billion usd .. er mer enn totalverdien på rec med 2 fabrikker … at folk ikke skjønner at rec trades for 30-40% av kostpris …
Redigert 08.06.2022 kl 10:02 Du må logge inn for å svare

En billion usd er da svært lavt, si heller to million usd for tilsvarende fabrikk til den Rec har i ML.
10.06.2022 kl 11:59 2648

Making Sense of Biden’s Green Energy Defense Production Act Announcements
JUNE 9, 2022
What These Announcements Mean
The DPA is a long and multifaceted statute, and Monday’s actions fall only under Section 303, which consists of two main tools. First, there is wide-ranging authority for the federal government to mandate, allocate, and install equipment within private and public facilities¹—a topic explored in a Roosevelt Institute brief this past January. To put it in business terms, this tool could be thought of as capital, capital equipment, or capital expenditures. Wage costs are higher in the US than in China or Southeast Asia—one factor commonly cited for products like solar panels being made there and not here. By invoking Section 303, the government can gift or subsidize the cost of physical capital equipment for firms—currently existing or new start-ups—and the cost differential could begin to close.

Second, the government can make advance market commitments to buy up a certain chunk of heat pumps or other clean energy products. Unlike procurement, where the government buys up goods and services for its own use, advance market commitments allow the government to buy up goods and redistribute them to firms, households, or foreign allies (at a profit, at cost, at a discount, or for free). While this tool has been most common in vaccine development (notably, Operation Warp Speed for COVID-19 vaccines), it is increasingly being contemplated for green energy uses. Concessional gifting of products like heat pumps to frontline communities could go toward meeting Justice40 targets,² and do so more directly and effectively than tax credits. (On the latter, see the recent Democracy Journal essay by Sylvia Chi and my Roosevelt colleague Lew Daly.)

Additionally, Title 303 has other, more open-ended authorities that allow the government to encourage the development of productive capacities more generally or the use and diffusion of emerging technologies.

Monday’s actions applied these authorities to certain energy-related sectors, namely solar modules and components; electrolyzers, fuel cells, and platinum group metals; transformers and electric power grid components; electric heat pumps; and insulation. The selection of these sectors is not by chance: They comprise some of the primary industries profiled in the administration’s extensive supply chain resilience reports that I reviewed for the Roosevelt Institute and Washington Post’s Monkey Cage last month.
Redigert 10.06.2022 kl 12:01 Du må logge inn for å svare
12.06.2022 kl 14:25 2186

Energy secretary talks U.S. plan to boost solar production
JUNE 11, 2022
GRANHOLM: Yeah. We want to make sure that we are manufacturing in the United States. It's one of the reasons why the President has invoked the Defense Production Act and is asking Congress to fund that so that we can build domestic manufactured solar panels. Largely, solar panels are manufactured now in Asia. We used to have a much bigger supply chain of solar, and that was big-footed, if you will, by largely China that came in and really has cornered the market on solar panels. But the president has called for Congress to also pass the CHIPS Act, which would increase the amount of semiconductors built in the United States. His whole effort is on building supply chains in the U.S., both for clean energy, but also for other products, including electric vehicles.
Redigert 12.06.2022 kl 14:26 Du må logge inn for å svare
12.06.2022 kl 14:34 2138

CHIPS Act bør vel også være til fordel for Rec. Prøver å lese meg opp om dette. Men vet manman01 eller andre i korte trekk hva som ligger av skatte-incentiver eller annen støtte i denne loven, og om den vil passere Kongressen i løpet av høsten?
12.06.2022 kl 15:28 1972

Both CHIPS grants and tax credits for semiconductor manufacturing and design are parts of
a complementary, holistic strategy, and both are needed to produce robust, predictable, and
durable incentives to restore U.S. semiconductor leadership.
The original bipartisan CHIPS Act in the 116th Congress (S.3922/H.R.7178) included both direct
grants and a tax credit for semiconductor manufacturing facilities and equipment. When the CHIPS programs were authorized as part of the FY 2021 NDAA the tax provisions were removed.

Grants and tax credits for chip manufacturing and design reinforce each other.
• Grants offer targeted, one-time incentives for manufacturing
• Tax credits for manufacturing and design offer ongoing, predictable incentives to
continue ongoing investments to construct, upgrade, and expand new and existing
facilities and to conduct advanced chip design.

CHIPS grants are focused on manufacturing capabilities, while strengthened FABS tax credits
provide incentives for both manufacturing and design.
The grant program allows Commerce to target funding to address key gaps and vulnerabilities
in our supply chain, while the tax credits allow for more streamlined implementation and can assist
companies and regions that do not receive a grant.
As the U.S. strengthens its semiconductor manufacturing and supply chain resiliency, it should
bolster our longstanding leadership in chip design.

The CHIPS Act also includes investments in advanced development, such as funding for a
National Semiconductor Technology Center (NSTC) and an Advanced Packaging Manufacturing
Program (APMP).
• Investments in semiconductor research will help ensure the U.S. remains the global technology
leader and will help educate the next generation of innovators, thereby providing the pipeline
of scientists and engineers needed for the U.S. economy and national security.
• Funding facilities for advanced prototyping and piloting will help inventors through the “valley
of death” where innovative ideas funded as pre-competitive basic research are unable to
secure the necessary investment to become commercially viable.
Redigert 12.06.2022 kl 15:32 Du må logge inn for å svare
12.06.2022 kl 15:43 1892

Det haster for usa å få infrastruktur på plass . De er alt for avhengige av Kina innen halvledere , nødvendige metaller , solar etc .
12.06.2022 kl 15:49 1860

USA tager ikke national sikkerhed for sjov, lad os sige det sådan :)
12.06.2022 kl 16:24 1707

Takk både til manman01 og Taycen for utfyllende info! Statlig subsidiering/støtte er ikke typisk amerikansk. Men er en kommet på etterskudd, må en tro at også en god del republikanere ser at dette er nødvendig, og støtter demokratene. Og for Rec blir dette sannsynligvis medvirkende til en gullalder!
13.06.2022 kl 10:54 1114

Democrat: Biden’s solar plan ‘builds a bridge’ for U.S. manufacturing — but there's more work to be done
JUNE 12, 2022
"What the president's plan does is it keeps the jobs that we already have in the U.S., in U.S. manufacturing of things like racking and tracking, inverters, all of those trade jobs installing existing panels, and the installers who do rooftop solar," Senator Martin Heinrich (D, NM), a member of the Senate Committee on Energy and Natural Resources, told Yahoo Finance Live (video above). "And then it builds a bridge to more U.S. manufacturing of actual panels."

At the same time, Heinrich added, it is unrealistic to build out the U.S. clean energy infrastructure without a reliance on Chinese imports given America’s current footprint in the space.

"A huge amount of the existing jobs in creating utility scale projects, as well as creating distributed rooftop projects, couldn't exist over the course of the next couple of years [without imported parts],” he said. “We need to about triple our domestic capacity to really have the kind of impact that we want. And the president's plan does that."
Redigert 13.06.2022 kl 10:55 Du må logge inn for å svare