The United States is actively working to establish resilient and diversified supply chains for clean energy, aiming to safeguard their economic security while simultaneously mitigating risks arising from the concentration of resources in a small number of countries. These statements were made by U.S. Secretary of the Treasury, Janet Yellen, in remarks prepared for an event in Las Vegas on Monday.

Yellen will address the challenges of transitioning from fossil fuels in a comprehensive speech she will deliver after touring union facilities, where workers learn skills for clean energy projects.

Her speech comes just days before the one-year anniversary of the Inflation Reduction Act, which includes $500 billion in new spending and tax breaks to promote clean energy, reduce healthcare costs, and increase tax revenues.

Yellen plans to commend the ongoing resilience of the U.S. economy, highlighting the significance of crucial legislation, such as the Inflation Reduction Act, in rebuilding the U.S. manufacturing base and stabilizing the supply chain to ensure the country's economic security.

"As we move away from fossil fuels, we remain concerned about the risks of over-concentrated clean energy supply chains," Yellen stated in an excerpt from her speech obtained by Reuters. "Today, the production of critical inputs for clean energy — from batteries to solar collectors to critical minerals — is concentrated in a few countries."

An earlier report by the International Energy Agency this year noted that China holds at least 60% of the manufacturing capacity for most mass production technologies, such as solar photovoltaics and wind turbines, with critical minerals also highly concentrated. The Democratic Republic of Congo supplies 70% of cobalt, China 60% of rare earths, and Indonesia 40% of nickel. Australia provides 55% of lithium mining, and Chile 35%, according to the report.

Yellen will emphasize that the U.S. is investing domestically to build more resilient and diversified supply chains while assisting other nations in accelerating their energy transition.

"The legislation to combat inflation helps repatriate some of the production crucial to our clean energy economy," her speech reads. "Accelerating these transitions could mean greater demand from the U.S. for clean energy technologies produced by American workers. It can also support global clean energy supply chains."

Yellen will speak at an event hosted by the International Brotherhood of Electrical Workers' educational center.

The statements in Nevada, which is likely to be a key battleground state in the 2024 presidential elections, are part of a month-long campaign by President Joe Biden and his Cabinet to persuade sceptical Americans that their policies aim to boost economic growth and combat climate change.

While the U.S. economy has surpassed recession warnings, achieving record low unemployment, strong wage gains, and better-than-expected GDP growth, many voters who supported Biden in 2020 believe the economy underperformed and might not vote for him in 2024, according to a Reuters/Ipsos poll released last week.