WASHINGTON—President Biden plans to sign an executive order Wednesday directing a broad review of supply chains for critical materials—from semiconductors to pharmaceuticals and rare-earth minerals—with the aim of spurring domestic production while strengthening ties with allies.
A chip shortage is squeezing auto makers in the U.S. and world-wide, and Biden administration officials have been working with industry to free up supplies. Cars use chips for numerous systems, including engine management, automatic braking and assisted driving.
The executive order is expected to call for a 100-day review of supply chains for four areas: semiconductors, used in products from cars to phones, large-capacity batteries used in electric vehicles, pharmaceuticals and rare-earth elements that are key to technology and defense. For example, neodymium is needed for the solid-state lasers used to designate missile targets.
Mr. Biden’s order is also expected to call for a separate, one-year review of supply chains covering six broader sectors, from technology to food production, a White House official said.
The official, who works on economic issues, told reporters that the executive order wouldn’t fix the near-term chip shortage, but the hope is to produce a longer-term plan to help the federal government prevent future supply-chain problems.
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