MCEIP - DPAI - DPA TIII

Announcements


01 FEB 2024

DOD Awards $192.5 Million to Establish Domestic Manufacturing Capabilities for Critical Defense Chemicals

The Department of Defense (DOD) announced today seven awards totaling $192.5 million through the Defense Production Act Investments (DPAI) Program to establish domestic manufacturing capabilities for critical chemicals.

"These critical chemical investments show the National Defense Industrial Strategy in action to ensure resilient supply chains and promote economic deterrence," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "The awards will result in the domestic production of military grade chemicals by establishing, expanding, and modernizing the manufacturing capacity of 22 critical chemicals used in defense systems, including non-energetic chemicals and precursors for both energetic and non-energetic chemicals."

DPAI generated this funding opportunity to incentivize companies to produce these essential chemicals domestically. Each of the companies receiving an award has demonstrated the ability to meet the minimum required production amounts of one or more of these chemicals using flexible, efficient, modern, and environmentally responsible manufacturing practices. In addition, these chemicals have multiple applications in the commercial sector, including but not limited to market segments like pharmaceuticals, consumer products, agriculture, automotive, and energy. The diversity of potential buyers will help maintain the long-term sustainability of this investment.

Additional information on the awards can be found here.


17 JAN 2024

DoD to Accelerate Investments in Defense Industrial Base With New Other Transaction Agreement Vehicle

The Department of Defense today announced the award of an Other Transaction Agreement (OTA) to Advanced Technology International (ATI) to serve as the consortium manager for the Defense Industrial Base Consortium (DIBC). This DIBC OTA will enable rapid research and allow access to commercial solutions for defense requirements and innovations from industry, academia, and non-traditional contractors.

"The Defense Industrial Base Consortium Other Transaction Agreement will not only help stimulate the growth of the defense industrial base, but it will also enable more rapid execution of Defense Production Act funding," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "Additionally, this helps us execute the National Defense Industrial Strategy, address defense supply chain pain points, develop the industrial workforce, sustain critical production, and allow for complementary investments from other federal agencies to build a robust, resilient, and modernized defense industrial ecosystem."

Additional information on the award can be found here.


21 DEC 2023

DoD Awards $46.2 Million to Revitalize the U.S. Defense Industrial Base On-Shoring of Advanced Packaging and Assembly

The Department of Defense today announced an award of $46.2 million to GreenSource Fabrication LLC (GreenSource) via the Defense Production Act Investment (DPAI) Program. The award will enhance existing production capabilities at a manufacturing facility of state-of-the-art integrated circuits (IC) substrate, high-density interconnect (HDI) and ultra-high-density interconnect (UHDI), and advanced packaging.

"Re-shoring advanced packaging and assembly are essential to increase semiconductor supply chain security," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "Expanding domestic production capability for printed circuit boards and advanced packaging is necessary to avert a shortfall that would severely impair national defense capability."

Additional information on the award can be found here.


08 DEC 2023

DoD, Singapore Ministry of Defense Enter Into Security of Supply Arrangement

The Department of Defense has entered into a bilateral, non-binding Security of Supply Arrangement (SOSA) with the Republic of Singapore. The arrangement will enable both the U.S. and Singapore to acquire industrial resources they need to quickly meet defense requirements, resolve unanticipated disruptions that challenge defense capacities, and promote supply chain resiliency.

Under the arrangement, the U.S. and Singapore agree to exchange reciprocal priority support for goods and services that promote national defense. It also creates a streamlined mechanism for DoD and Singapore's MINDEF to request expedited industrial resources to resolve unanticipated supply chain disruptions affecting national security requirements. SOSAs are an important mechanism for DoD to strengthen interoperability and are a proven supply chain tool for enabling a resilient, global defense ecosystem for the U.S. and key partners and allies.

Additional information on the SOSA can be found here.


05 DEC 2023

DoD Awards $23.4 Million to Expand Domestic Capability to Upcycle Scrap Material into High-Grade Metal

The Department of Defense today announced award of $23.4 million via the Defense Production Act Investment (DPAI) Program to 6k Additive, LLC to expand capability to upcycle waste and scrap material for conversion into higher grade metals for use in defense and commercial supply chains.

"U.S. dependency on foreign sources for specialty metals presents a significant risk to national security," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD (IBP)). "6K's products will feed supply chains that form the basis of our military's core warfighting capabilities."

The award will enable 6K Additive to execute facility renovation, equipment acquisition and installation, and engineering. This will result in production capacity for high-grade metals to include titanium, niobium, nickel, and tungsten. Additional information on the award can be found here.


29 NOV 2023

DoD Enters Agreement to Expand Domestic Graphite Supply Chain

The Department of Defense announced today a $3.2 million agreement with South Star Battery Metals Corporation (South Star) to support domestic production of Coated, Spheronized, Purified Graphite (CSPG) at their BamaStar Graphite Project (BGP) in Coosa County, Alabama.

The agreement with South Star, entered into under Defense Production Act (DPA) Title III authorities and utilizing funds appropriated by the Inflation Reduction Act, will enable the company to perform a bankable feasibility study. The study will cover the entire process from mining to final production of CSPG, exploring both economic and environmental, social, and governance criteria.

Upon successful completion of the bankable feasibility study, South Star plans to construct a downstream battery-grade processing facility in the southeast United States that would take concentrates from the BamaStar mine site and transform it into CSPG. This will be used as feedstock for domestic lithium-ion battery anode production, contributing to a more complete U.S.-based graphite anode supply chain. Additional information on the award can be found here.


15 NOV 2023

DoD Awards $39.9 Million to Strengthen U.S. Supply Chains for Printed Circuit Boards

The Department of Defense today announced an award of $39.9 million via the Defense Production Act Investment (DPAI) Program to Calumet Electronics Corporation to enhance capabilities to produce High-Density Build-Up (HDBU) substrates, which include High-Density Interconnect Printed Circuit Board (PrCB) cores and HDBU build-up layers.

"The Biden Administration has prioritized the need to support and advance the domestic PrCB and advanced packaging industrial base," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "These technologies are critical for modern weapons systems and will contribute to maintaining our warfighting edge over potential adversaries."

The award will enable Calumet to scale up engineering, tooling, and manufacturing operations to establish domestic production capabilities for HDBU substrates. HDBU substrates and advanced packaging are critical enabling technologies for sixth generation systems and applications, including for radar, electronic warfare, processing, and communications. The place of performance is Calumet, Michigan. Additional information on the award can be found here.


30 OCT 2023

DoD Awards $12.7 Million to Increase Titanium Powder Production for Defense Supply Chains

The Department of Defense today announced award of $12.7 million via the Defense Production Act Investment (DPAI) Program to IperionX Technology, LLC to increase titanium powder production for defense supply chains. "Robust and resilient defense supply chains are critical to the Warfighting capability of the United States," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "Domestic titanium production is a top priority for the DoD's industrial base programs."

The award is to commission and scale up IperionX's facility in Virginia to a demonstration plant, increasing the company's titanium powder production to 125 metric tons (MT) annually. IperionX's goal is to produce 10,000 MT of titanium metal powder per year within five years. The company produces titanium alloys from either titanium minerals or 100% recycled material.

Additional information on the award can be found here.


28 SEP 2023

DoD Sparks Innovation and Resilience Across the Defense Microelectronics Industrial Base

The Department of Defense’s Office of Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, has awarded a combined $17.5 million in contracts to support two initiatives that will strengthen the resilience of the defense microelectronics industrial base. Both projects introduce new, agile industrial capacities to better produce and manage microelectronic parts.

The $6 million investment will support the iterative design and development of the cloud-based platform. This tool will support Military Service and defense agency weapon system program offices; prime system developers and maintainers; and acquisition, sustainment, research, development, testing, and evaluation offices across the Department. JRC Integrated Systems, LLC of Washington, D.C. and Systems Innovation Engineering of Mullica Hill, New Jersey will execute the EMPS project.

Mr. Anthony Di Stasio, MCEIP Director stated, “EPMS will provide an important ‘whole-of-DoD’ view of the microelectronics parts supply chain and enable better life-cycle management of this critical technology for DoD weapon systems.” Additional information on the awards can be found here.


26 SEP 2023

DoD Establishes Munitions Campus Pilot to Lower Barriers for Emerging Industry

The Department of Defense's Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, has launched a munitions campus pilot project to support multiple emerging domestic businesses through a shared facility that will reduce cost and lower barriers to entry.

Through the pilot project, awarded to the American Center for Manufacturing and Innovation (ACMI) under a competitive process, DoD will provide $50 million in shared equipment and $25 million in funding to transition research and development (R&D) into production and to support domestic supply chain resilience. The pilot campus, the location for which will be determined as part of the project, is an important exploratory first step in a plan to open multiple campuses around the country.

Additional information on the project can be found here.

19 SEP 2023

DoD Enters an Agreement to Expand Domestic Manufacturing to Strengthen U.S. Supply Chains for Rare Earth Magnets

The Office of the Assistant Secretary of Defense for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, issued an award to E-VAC Magnetics, LLC (E-VAC) to establish a domestic rare earth permanent magnet manufacturing capability. E-VAC is part of VAC Group, a manufacturer of rare earth permanent magnets.

The agreement will provide $94.1 million to E-VAC to acquire and install manufacturing equipment, operationalize technical infrastructure, and engineer production lines. E-VAC will perform this work to establish high volume rare earth permanent magnet production by 2025.

"We're building on previous DoD awards, that augment or complement other Agency investments for rare earth minerals to help establish an integrated, domestic rare earth supply chain from mine to magnet," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "IBP is reinforcing the Administration's goal to build a rare earth industrial base fully capable of meeting our national defense requirements." Additional information on the award can be found here.


18 SEP 2023

DoD Launches Energy Storage Systems Campus to Build Domestic Capacity

The Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, has awarded a three-year, $30 million project to establish an energy storage systems campus. The project will accelerate transition and scaling of next generation batteries, while reducing dependence on scarce critical materials.

The energy storage systems campus will leverage and stimulate over $200 million in private capital, to accomplish three complementary objectives: optimizing current lithium ion-based battery performance, accelerating development and production of next generation batteries, and ensuring the availability of raw materials needed for these batteries. It incorporates workforce development as a key pillar, bringing together universities, trade schools, and businesses to create job growth while upskilling the domestic workforce.

Additional information on the project can be found here.


12 SEP 2023

DoD Enters an Agreement to Strengthen the U.S. Supply Chain for Nickel Production

The Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, entered an agreement with Talon Nickel (USA), LLC (Talon) to increase the domestic production of nickel.

The $20.6 million agreement, entered into under Defense Production Act (DPA) Title III authorities and using funds appropriated by the Additional Ukraine Supplemental Appropriations Act, advance nickel exploration and mineral resource definition of the Tamarack Intrusive Complex (TIC).

Nickel is an essential mineral input to produce high-temperature aerospace alloys, stainless steel, and chemicals for lithium-ion batteries. The United States has only one operating nickel-cobalt mine with a current, publicly announced life of mine extending through 2026.

"This is yet another example of the critical importance of the DPA investment authorities," said Anthony Di Stasio, Director for MCEIP." "This award exemplifies the DoD's commitment to strengthening the resilience of critical supply chains and lessening our reliance on foreign sources of vital materials." Additional information on the award can be found here.


12 SEP 2023

DoD Enters Agreement to Expand Domestic Lithium Mining for U.S. Battery Supply Chains

The Office of the Assistant Secretary for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, entered an agreement with Albemarle Corporation to support the expansion of domestic mining and production of lithium.

The $90 million agreement, entered into under Defense Production Act (DPA) Title III authorities and utilizing funds appropriated by the Inflation Reduction Act, will help support Albemarle's planned re-opening of their Kings Mountain, N.C. lithium mine to increase domestic production of lithium for the nation's battery supply chain. Albemarle estimates that Kings Mountain will be operational between 2025 and 2030.

"The agreement with Albemarle demonstrates the DoD's ongoing commitment to meeting the needs of our warfighter, today and in the future," said Mr. Anthony Di Stasio, MCEIP Director. "This investment directly supports President Biden's April 2022 Presidential Determination for Critical Materials in Large-Capacity Batteries." Additional information on the award can be found here.


04 AUG 2023

DoD Enters an Agreement to Strengthen the U.S. Supply Chain for Essential Turbine Engines

The Office of the Assistant Secretary for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, entered into an agreement with Selmet, Inc., a Consolidated Precision Products company, to support the production of specialty titanium castings used for key components for turbine engines for the F-15, F-16, F-22, and F-35 aircraft.

The $1.31 million agreement, entered into under the Defense Production Act (DPA) Title III authorities and utilizing funds appropriated by the Additional Ukraine Supplemental Appropriations Act, will enable Selmet to procure and install specialty equipment required to produce complex titanium castings. The project reduces the risk of supply chain disruptions for the turbine engines supporting some of our military’s most essential fighter aircraft.

“Resiliency at all points in our defense industrial base is required to ensure the operational availability of the platforms on which our warfighters depend,” said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. “Upstream supporting activities are just as important as the manufacturing of final products.” Additional information on the award can be found here.


17 JUL 2023

DoD Enters Agreement to Expand Capabilities for Domestic Graphite Mining and Processing for Large-Capacity Batteries

The Office of the Assistant Secretary of Defense for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization office, entered an agreement with Graphite One (Alaska) to secure a reliable, sustainable supply of graphite materials within the U.S. to be used in the production of large-capacity batteries.

The $37.5 million agreement, entered into under Defense Production Act (DPA) Title III authorities and using funds appropriated by the Inflation Reduction Act, will aid Graphite One (Alaska) in developing a domestic advanced graphite supply chain solution anchored by the Company's Graphite Creek resource. Graphite One's supply chain strategy includes mining from Graphite Creek and processing the graphite ore through an advanced material and battery anode manufacturing plant expected to be sited in Washington State. Graphite One's strategy also includes plans for a recycling facility to reclaim graphite and other battery materials, to be co-located at the advanced materials manufacturing site; the third link in Graphite One's circular economy strategy.

DPA Title III funding will allow Graphite One to fast-track their feasibility study by a full year, informing and expediting decisions to move the project further through their plans for a complete U.S.-based graphite anode supply chain. Additional information on the award can be found here.


20 JUN 2023

DoD Enters $13.8 Million Agreement to Expand Domestic Manufacturing to Strengthen U.S. Supply Chains

The Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)), through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Directorate, announced it has entered a $13.8 million agreement with The Timken Company (Timken) to increase production of high-precision ball bearings at its facility in Keene, New Hampshire. Timken's high precision ball-bearings are used in defense and space-related advanced systems.

The funds, appropriated to the DPA Fund by the Additional Ukraine Supplemental Appropriations Act (Ukraine Supplemental), will be used to make operational and technological improvements at the company's facility, including upgrading equipment and operator training. Timken is also investing approximately $11 million to further expand these capabilities at the facility. Congress identified capacity for high-precision ball bearings for defense and space-related advanced systems as a Defense Industrial Base (DIB) Area of Interest in the Ukraine Supplemental, enacted in May of 2022. The supply of these ball bearings is a constraint in increasing demand for advanced systems.

Additional information on the award can be found here.


16 JUN 2023

DoD Enters Agreement to Expand Domestic Manufacturing to Strengthen U.S. Missiles and Munitions Supply Chains

The Department of Defense's (DoD) Office for the Assistant Secretary of Defense for Industrial Base Policy (OASD (IBP)) has entered into an agreement with Arconic Corporation to increase production of missiles and munitions. The purpose of the $45.5 million agreement with Arconic is to increase production of High Purity Aluminum (HPA) at its facility in Davenport, Iowa. The low-cost production of HPA by foreign smelters has resulted in decreased production of HPA in the United States.

The DoD is utilizing Defense Production Act (DPA) Title III authorities and funds appropriated by the Additional Ukraine Supplemental Appropriations Act. The project will provide the United States much-needed surge capacity for HPA production and mitigate risks to national security in the event of an industrial mobilization. The funds will be used for infrastructure at the facility and modifications to accommodate the increased capacity and new equipment. Among the improvements are the design and installation of a new furnace and the implementation of new control and automation systems. HPA is a critical material for many military and commercial systems, including aerospace platforms and tactical ground vehicles.

Additional information on the award can be found here.


15 JUN 2023

DoD Enters Agreement to Expand Domestic Manufacturing and Strengthen U.S. Cobalt Supply Chains

The Office of the Assistant Secretary for Industrial Base Policy (OASD(IBP)), through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office entered an agreement with Jervois Mining USA, a subsidiary of Jervois Global Limited, to conduct feasibility studies to expand cobalt extraction in Idaho.

The $15 million agreement, entered into under Defense Production Act (DPA) Title III authorities and utilizing funds appropriated by the Additional Ukraine Supplemental Appropriations Act, will enable Jervois to undertake mineral resource drilling that will accelerate the improved definition and expansion of currently known cobalt resources at Jervois's Idaho Cobalt Operations (ICO) and the adjacent Sunrise deposit and studies to assess a domestic U.S. cobalt refinery. The project is a critical step in the U.S. effort to decrease reliance on overseas sources of strategic and critical minerals.

Cobalt is a component of multiple munitions and high-temperature aerospace alloys used by DoD and has critical applications in high-capacity batteries for military and commercial electric vehicles. DoD has identified a foreign dependence for cobalt in the reports completed pursuant to Executive Order (E.O.) 14017. Additional information on the award can be found here.


24 MAY 2023

DoD Announces $10 Million Defense Production Act Title III Agreement With Six Sigma to Strengthen the Domestic Microelectronics Industrial Base

As part of the nation's effort to sustain the microelectronics manufacturing capability necessary for national and economic security, and in support of Executive Order 14017, America's Supply Chains, the Department of Defense recently entered a $10 million agreement with Six Sigma utilizing Defense Production Act (DPA) Title III authorities.

Six Sigma will increase the capacity of both its copper solder column manufacturing and column attach processes to enable the production of high-reliability Column Grid Array components (such as Field Programmable Gate Arrays and Application Specific Integrated Circuits) for military and aerospace applications. The project will run 51-months and be performed at its facility in Milpitas, California.

"This investment ensures critical DoD military and space programs operating in extreme thermal and vibration environments are available to meet the needs of American strategic interests," said Dr. Taylor-Kale, ASD (IBP). "It exemplifies the Department's commitment to ensuring the resilience and integrity of our nation's critical supply chains." Additional information on the award can be found here.

28 APR 2023

DoD Strengthens Supply Chains for Hypersonic and Strategic Systems

The Department of Defense's (DoD) Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)), through its Office of Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Directorate, announced it has made three awards to strengthen supply chains for hypersonic and strategic systems. The companies receiving the awards are General Electric (GE), Carbon-Carbon Advanced Technologies (C-CAT), and Northrop Grumman.

GE was awarded a $7.96 million contract to engage in a 39-month effort to increase capacity for the production of high- and ultra-high temperature composites (U/HTC), as well as the modernization of capital equipment to support the scale-up of aeroshell production. The work is taking place at the GE Advanced Materials Center in Newark, Delaware.

C-CAT was awarded a $7.57 million contract to undertake a 38-month effort to build new production capabilities, expand existing manufacturing spaces, and acquire capital equipment for the manufacture of large complex assemblies made of carbon-carbon (C-C), a class of advanced composite material that is critical for various defense and aerospace applications. This effort will support increased production rates for C-C nose tips and aeroshell assemblies for ongoing DoD-sponsored pilot production programs and is taking place at their Arlington, Texas facility.

Northrop Grumman Systems Corporation will expand the domestic capability for producing U/HTC to support multiple components of hypersonic and strategic systems through the procurement of automated preform manufacturing equipment and high temperature furnaces. Through the $9.43 million dollar contract, the work will be conducted at Northrop Grumman's Elkton, Maryland facility and will expand the company's existing production processes to meet DoD performance specifications.

Additional information on the awards can be found here.


14 APR 2023

DoD Strengthens Supply Chain for Solid Rocket Motors

The Department of Defense's (DoD) Office of Manufacturing Capability Expansion and Investment Prioritization (MCEIP) has entered into a $215.6 million agreement with Aerojet Rocketdyne (AR) to expand and modernize AR's facilities in Camden, Arkansas; Huntsville, Alabama; and Orange County, Virginia, where the company manufactures complex rocket propulsion systems.

These systems propel DoD missiles and missile defense interceptors, along with space launch vehicles and national security satellites used in civil and commercial applications. The funds will modernize manufacturing processes at the company's facilities, consolidate production lines, purchase equipment, build systems to process data, and increase production and delivery speed for Javelins, Stingers, and the Guided Multiple Launch Rocket System (GMLRS).

This effort was funded by the Additional Ukraine Supplemental Appropriations Act. The U.S. has provided Javelins, Stingers, and GMLRS rockets to the Ukrainian government, and the modernization of AR facilities will benefit DoD as it replenishes its ammunition supplies. Additional information on the award can be found here.


27 MAR 2023

Defense Production Act Title III Presidential Determination for Printed Circuit Boards and Advanced Packaging Production Capability

President Joe Biden signed a presidential determination (PD) authorizing the use of Defense Production Act to support the nation’s domestic Printed Circuit Boards (PrCB) and Advanced Packaging industrial base. The PD allows the Department of Defense (DoD) to utilize its Defense Production Act (DPA) Title III authorities to invest in advanced microelectronics capacity and ensure the production of state-of-the-art integrated circuits in the United States.

President Biden’s Executive Order 14017 on “America’s Supply Chains” prioritized the need to support and advance the domestic PrCB and Advanced Packaging industrial base to addresses strategic vulnerabilities to U.S. military readiness and challenges to American economic competitiveness.

PrCBs are critical components in all electronics used in the national defense, economic, environmental, energy, and healthcare management sectors. Advanced packaging allows multiple devices to be packaged and mounted on a single electronic device. Advances in materials, manufacturing tooling, and process development are imperative in advanced packaging to support rapidly evolving technology and the continuously shrinking feature sizes. Additional information on the PD can be found here.


03 MAR 2023

Defense Production Act Title III Presidential Determination for Airbreathing Engines, Advanced Avionics Position Navigation and Guidance Systems, and Constituent Materials for Hypersonic Systems

President Joe Biden signed a presidential determination (PD) authorizing the use of Defense Production Act (DPA) Title III authorities to rebuild and expand the nation's domestic hypersonics industrial base. The authority specifically targets air-breathing engines, advanced avionics, guidance systems, as well as constituent materials for hypersonic systems.

"The Department of Defense's DPAI Office continues to deliver on its mission of reshoring and re-establishing domestic production in sectors critical to our nation's national security needs and strategic interests," said Anthony Di Stasio, Director of the MCEIP office. "We are pleased and excited that the President is allowing us the opportunity to act on behalf of the nation to accelerate the advancement of hypersonics capabilities in the United States. These investments will lead to new training and job opportunities for American citizens in facilities across the country."

Additional information on the PD can be found here.


28 FEB 2023

President Biden Signs Presidential Waiver of Statutory Requirements for Supply Chain Resilience

President Joe Biden signed a presidential waiver of some statutory requirements (Waiver) authorizing the use of the Defense Production Act (DPA) to allow the Department of Defense (DoD) to more aggressively build the resiliency of America's defense industrial base and secure its supply chains. Specifically included in the Waiver are defense organic industrial base supply chains critical to the DoD as well as critical supply chains for electronics, kinetic capabilities, castings and forgings, minerals and materials, and power and energy storage. This authority also affords the ability to invest in strategic areas that enable the industrial base such as workforce development.

Since many of the investments needed in areas like mining and processing of critical minerals can be very costly and take several years, the Waiver permits the DoD to leverage DPA Title III incentives against critical vulnerabilities, and removes the statutory spending limitation for aggregate action against a single shortfall exceeding $50 million. This in turn allows the Department to make more substantial, longer-term investments.

Additional information on the Waiver can be found here.