Steel Loving Biden's Strengthening of 'Buy American" Rules
At a news conference held before signing the executive order, Biden said, "American manufacturing was the arsenal of democracy in World War Two, and it must be part of the engine of American prosperity now. That means we are going to use taxpayers' money to rebuild America. We'll buy American products and support American jobs, union jobs."
He went on to say, "I've long said that I don't accept the defeatist view that the forces of automation and globalization can't keep — can keep union jobs from growing here in America . . . American manufacturing was the arsenal of democracy in World War Two, and it must be part of the engine of American prosperity now."
The Biden administration's focus on US manufacturing and domestic supply chains will benefit established and developing minerals and metals sectors, including steel, rare earths, graphite and lithium. The return to American manufacturing will boost projects and increase demand for American made finished goods and raw materials, such as metals and minerals, and is being heralded by steel unions and associations.
"We are pleased by the President's action today," Steel Manufacturers Association (SMA) president Philip K Bell said in a statement. "Executive orders, rulemaking and Congressional legislation should continue to focus on enhancing 'Buy America' in ways that benefit American workers and companies."
"We are pleased that [the] executive order will tighten up the process for considering waivers to existing domestic preference requirements and will also increase domestic content requirements for defining what constitutes a product that is made in the United States," said Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute, in a statement.
It is hoped that the move signals Biden's intent to continue the protectionist measures his predecessor started and that helped to boost steel prices.
Canoo Awards Manufacturing Contract to VDL Nedcar
Canoo, a trailblazing company in the electric vehicle (EVs) manufacturing industry, has officially announced owned and contract manufacturing plans that will ensure the company manages to deliver on its promise to consumers of production and delivery of vehicles in Q4, 2022.
During the company’s first Investor Relations Day, Chairman & CEO of Canoo, Tony Aquila, named VDL Nedcar as its contract manufacturing partner. VDL Nedcar, which I’m sure many of you will already have heard of, is the only independent Vehicle Contract Manufacturer in the Netherlands and has enjoyed fifty years of growth under owners, including Mitsubishi Motors and Volvo cars. According to the report, Nedcar will manufacture the Lifestyle Vehicle for the United States and European Union markets, while Canoo builds a US-based mega micro-factory.
"We conducted an exhaustive search, invested significant amounts of time and resources that span the globe, in our search for our Phase 1 contract manufacturer. VDL Nedcar is the right partner," said Tony Aquila, Investor, Chairman and CEO of Canoo, Inc. "They are the top trusted European manufacturer building high-quality products for leading OEMs, and they significantly outcompeted the other contenders. VDL is also independently owned by the van der Leegte family of entrepreneurs - which aligns with our commitment to support businesses that form the backbone of communities. This strategic partnership will enable us to deliver vehicles to market while we build our Phase 2 factory in Oklahoma. It also strongly positions us for geographic expansion in Europe and builds a lasting relationship with VDL Groep of companies. Our investment will help us scale quickly and fulfil our mission to bring affordable, purpose-built EVs to Everyone."
Canoo and VDL have already gotten to work on vehicle manufacturability and production planning so that Canoo can successfully lay the groundwork for its upcoming US manufacturing operations expansion, which will be completed in Oklahoma in 2022. The Nedcar facility currently expected to produce around 1000 units for both the US and European markets in 2022, with an additional 15000 targeted for the following year.
"Canoo's bold approach to designing and building electric vehicles makes them an ideal partner as we work together to shape the future of mobility," said John van Soerland, CEO of VDL Nedcar. "This partnership advances our strategic vision to provide a contract manufacturing solution and expand our expertise in the EV arena."
Currently, Canoo is entering its GAMMA phase of development and is on track to start production soon. The company intends and expects to launch its Lifestyle Vehicle in Q4 2022, closely followed by the Multi-Purpose Delivery Vehicle and Pickup Truck.
Watch this space.