The move comes as US automotive manufacturing battles with a shortfall in the supply of semiconductors and other products as a result of the Covid disruption and US-China trade disputes.

As the automotive industry moves towards electrification and integrates more digital technology into its vehicles, it becomes vulnerable to disruption, since supply chains for both semiconductors and battery cells are still concentrated in Asia. Currently, only 12% of global semiconductor manufacturing capacity is located in the US and the situation is similar for battery cells, although OEMs are making moves, mainly using joint-ventures, to bring more of the battery supply chain to North America.

The order, which was signed on February 24, should accelerate this, as President Biden said it would address vulnerabilities in US supply chains across critical sectors of the economy so that the American people were better prepared to withstand any crisis and be self-reliant.