An executive at Mitsubishi Heavy Industries has raised concerns about the Biden administration’s plan to rely on domestic manufacturing and supplies from allied nations, stating that it may not be enough to meet US climate goals. Takajiro Ishikawa, CEO of MHI America, warned that securing the necessary parts for a clean energy boom would be challenging and that the US would likely still need cleantech imports from China. He also highlighted the chronic shortage of laborers in the US. These comments come as the Biden administration aims to compete with China in clean energy while reducing greenhouse gas emissions and revitalizing industrial areas.
The concern over the reliance on domestic and allied manufacturing is shared by executives in other industries. The CEO of Raytheon, a US weapons maker, stated that decoupling from Chinese supply chains would be impossible. Additionally, the Brookings Institution warned against allowing clean energy to become a victim of US-China rivalry, emphasizing the importance of collaboration between the two largest economies in fighting the climate crisis.
Although the Biden administration’s Inflation Reduction Act offers substantial subsidies for clean tech manufacturing, there are doubts about the US’s ability to produce everything domestically and without materials sourced from foreign entities. China currently dominates cleantech production and supply chains, making most of the world’s solar panels, batteries, and electric vehicles. Ishikawa also expressed concerns about the strain on the US labor market caused by the manufacturing boom.
Mitsubishi Heavy Industries has invested in US hydrogen projects and operates several factories in North America. However, Ishikawa pointed out that even manufacturing capacity in allied countries like Japan is diminishing due to population decline. He also urged the US not to abandon fossil fuels entirely but to utilize carbon capture technology alongside conventional sources. Ishikawa emphasized the importance of US fossil fuels for Japan’s energy security as a major buyer of liquefied natural gas.
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