News

To win the artificial intelligence race with China and better compete with Russia, the U.S. must reduce its project-approval times, the head of the largest American natural gas company has warned Congress (Financial Times, subscription).

What’s going on: “Congress [needs] to step up and act,” EQT President and CEO Toby Rice told the FT regarding the need for the government to streamline “America’s byzantine permitting process,” which has greatly increased infrastructure project costs and times.

• “The threat of not getting infrastructure built has only gotten larger,” he continued. “Not only from bad actors getting rich by selling energy that could be replaced with American energy—it’s also the threat of China winning the AI race.”
• The biggest concern, according to Rice: judicial review, which allows for up to six years of legal challenges of permit decisions.

We need it all: In recent years, the U.S. has been shuttering baseload power plants and making it harder for companies to build natural gas infrastructure, Rice continued, and as a result, prices have risen and the electrical grid is becoming unreliable.

• Since the start of his second term, however, President Trump has prioritized making the U.S. energy dominant, taking actions like lifting the previous administration’s ban on new LNG export permits.

The backdrop: “These actions come as the U.S. races to meet growing domestic and global power demand caused by the data centers used to build and develop AI.”

• Global electricity demand from data centers is expected to double by 2030, according to the International Energy Agency.

A positive step: This week, EQT “signed an agreement in principle to provide gas to a 4.4[-gigawatt] plant that will power the Homer City Energy Campus, a 3,200 acre data center in Pennsylvania.”

Europe, too: Europe has been trying to wean itself off Russian gas since Russia’s invasion of Ukraine in 2022.

• This week, ENI—one of Europe’s biggest energy firms—signed an agreement to purchase 2 million metric tonnes of LNG from U.S. company Venture Global.

The NAM’s view: “Mr. Rice is right that, as the NAM has long said, the U.S. permitting system is holding us back,” said NAM Vice President of Domestic Policy Chris Phalen.

• “The administration has made important strides in cutting needless red tape, but manufacturers need comprehensive permitting reform legislation from Congress that supports all energy sources and makes improvements to our transmission and distribution systems for the nation to reach its full potential.”

Researchers seeking new methods of generating thermal energy are now trying something new: the oil and gas industry (POLITICO’s E&E News).

What’s going on: “State research officials in North Dakota are examining two new options—pairing geothermal with active oil and gas sites and using captured carbon dioxide as a feedstock for geothermal power production.”

• The state gave the go-ahead in June for a $250,000 feasibility study looking at “whether those two new geothermal technologies could be used” there.

Why it’s happening now: President Trump signed an executive order in April, calling for the elimination of “all illegitimate impediments” to the development of geothermal projects.

• Geothermal power enjoys bipartisan support in Congress, and federal tax incentives for both geothermal and carbon capture and storage have “created an environment where companies and researchers can start to explore different methods of production,” Matt Villante, an earth scientist with the Pacific Northwest National Laboratory, told E&E News.
• In addition, the 45Q tax credit, which offers an incentive for carbon management undertakings that capture carbon dioxide, was preserved in the recent reconciliation bill.

How it works: Researchers are exploring several different methods for using captured carbon dioxide to produce geothermal energy, which is traditionally extracted “by drilling and pumping up brine from deep within the earth.”

• One method would involve injecting large amounts of carbon dioxide into the ground to push out the brine.
• “Another approach could be pushing CO2 underground to the heat source, and pumping back up the heated CO2 to power the turbines, then injected the cooled carbon dioxide back underground in a closed-loop system.”
• A third way would use hydraulic fracturing to break up “hot dry rock” using carbon dioxide.

Yes, but…Despite the support for geothermal, actual projects to harness it are thin on the ground.

• In 2023, only about 0.4% of U.S. power came from geothermal sources, according to the U.S. Energy Information Administration, as “investors … [wait] for the existing technology to become safer bets.”

The NAM says: “While geothermal represents a small portion of the energy mix now, the NAM supports efforts to invest in developing the technology so that the U.S. has more sources in its all-of-the-above energy portfolio,” said NAM Director of Energy and Resources Policy Michael Davin.

Indium Corporation, founded in Upstate New York, has a long record of turning challenges into innovations.

Not long after its namesake element, indium, failed as an anti-tarnish silverware coating, the company discovered during World War II that it could be used instead in aircraft bearings. Then once jet engines made that application obsolete, the company began using indium to coat glass in everything from electronics to supermarket refrigeration units. Today, indium is used in all sorts of fields, from aerospace, to telecommunications, to tumor eradication.

• “We’re always exploring how we can add ingredients to a material, or find a new way of looking at something, or solve a problem in a different way,” said President and CEO Ross Berntson. “At Indium Corporation, we believe that materials science changes the world.”

Now, Indium Corporation is turning its attention to a new and pressing issue: creating a North American supply chain for a critical mineral.

Exploring challenges: Gallium is a byproduct of aluminum production that is essential for everything from semiconductors, to electric vehicles, to wearable electronics. But while demand for gallium is rising, 98% of gallium today comes from China—creating a single supply chain that is vulnerable to international challenges and disruptions.

• “That’s just simply not a robust supply chain, right?” said Berntson. “We need to make a stronger, more robust global supply chain. And the first step is to bring on a North American supply.”

Developing solutions: Indium Corporation is working with Rio Tinto, one of the world’s largest aluminum producers, to extract gallium from North American bauxite sources in Canada.

• With a strong stable of engineers, proximity to a tremendous amount of hydroelectric power and a commitment to sustainability, Indium Corporation sees Rio Tinto as the perfect partner for this effort.

Setting goals: Through the partnership, Indium Corporation and Rio Tinto aim to produce up to 40 tons of gallium per year in North America—a significant portion of the 600–700 tons of gallium that is used annually. And for Berntson, the innovation that will result is the most exciting part.

• “Not only does this work secure the supply chain for existing applications, but it also creates a robust source of gallium so people can get creative with it—for new alloys and new compounds that nobody ever thought of before,” said Berntson. “It’s exhilarating to think about having more gallium available, and what we can do with a bunch of creative minds working with that element.”

Calling for partnership: While Indium Corporation is investing heavily in gallium production, Berntson believes that public–private partnerships are key to mitigating risk and ensuring that gallium exists as a resource that can enable American competitiveness.

• “The availability of gallium is bigger than any one company,” said Berntson.

The key to success: Berntson credits his company’s talented engineers with Indium Corporation’s success—and emphasizes the need to let brilliant minds find unexpected solutions.

• “There’s a ton of talent in the world,” said Berntson. “Bringing them in, helping them to grow and giving them enough space to be innovative—time and time again, that’s how we’re able to be at the leading edge of our industry.”

The Trump administration has released the text of a framework agreement with Indonesia yesterday, also announcing a deal with Japan that has not been made public yet.

Framework agreement with Indonesia: The document released yesterday is a framework for negotiating an “Agreement on Reciprocal Trade.” It includes some commitments but also lays the groundwork for more negotiations.

U.S. exports to Indonesia: Indonesia will “eliminate tariff barriers” on approximately 99% of U.S. industrial and agricultural exports.

• For context, U.S. manufacturing exports to Indonesia in 2024 were $6.5 billion of the $10.2 billion total. Manufacturing imports from Indonesia in 2024 were $25.4 billion of the $28 billion total.

U.S. imports from Indonesia: This agreement would reduce the U.S. tariff on imports from Indonesia to 19% from the 32% rate imposed by the Trump administration on April 2.

• Significantly, the agreement suggests the U.S. “may identify certain commodities not naturally available or domestically produced for further reduction in the reciprocal tariff rate.”
• This type of approach is exactly what the NAM has pushed for in its proposed U.S. Manufacturing Investment Accelerator Program, and it will continue advocating for such policies in subsequent trade agreements.

Critical minerals: Indonesia, which had previously banned exports of nickel, will also remove restrictions on exports to the U.S. of industrial commodities, including critical minerals.

Other key components: The agreement also achieves commitments by Indonesia on other key trade issues.

• Nontariff barriers: Indonesia will accept U.S. standards and certifications for vehicles, medical devices and pharmaceuticals, exempt certain U.S. products from local content requirements and also allow the import of U.S.-remanufactured goods.
• Digital trade: The country will also now support the World Trade Organization’s e-commerce moratorium on tariffs on electronic transmissions—something it had opposed previously and that is essential to manufacturers seeking to move information across borders.
• Steel: Indonesia pledged to join the Global Forum on Steel Excess Capacity, an approach the NAM supports to address unfair subsidization and excess production, particularly by China, that distort global markets.
• China: Indonesia will work with the U.S. to address the unfair practices of other countries and to cooperate on export controls, investment security and combatting duty evasion.
• Purchases: Indonesia has agreed to purchase U.S. aircraft, agricultural products and energy products.

More to come: President Trump has previewed agreements with the Philippines and Vietnam on social media, while Japanese officials have announced an agreement on tariffs at a press briefing. The NAM will report on the official details once they are available.

The bigger picture: Here are some other trade developments that the NAM is tracking:

• U.S. Treasury Secretary Scott Bessent will meet his Chinese counterpart in the coming days.
• President Trump will travel to Scotland for discussions on “finalizing” details in the U.K. deal.
• Talks with the EU, Canada and Mexico continue.
• And lastly, the president has signaled he may send letters setting a flat rate of 10–15% tariffs to some 150 countries.

Westinghouse will construct 10 large nuclear reactors in the U.S., the energy company told President Trump at a roundtable in Pennsylvania this week (CNBC).

What’s going on: “Westinghouse’s big AP1000 reactor generates enough electricity to power more than 750,000 homes, according to the company. Building 10 of these reactors would drive $75 billion of economic value across the U.S. and $6 billion in Pennsylvania,” Westinghouse interim CEO Dan Sumner said Tuesday during Sen. Dave McCormick[’s] (R-PA) inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University.

• The U.S. has built just two nuclear reactors in the past three decades, both Westinghouse AP1000s at Plant Vogtle in Georgia.

Presidential appearance: President Trump also announced at the summit that private companies will invest some $90 billion in Pennsylvania (CBS News).

• “We’re building a future where American workers will forge the steel, produce the energy, build the factories and really run a country like, I believe, this country has never been run before,” the president said, according to CBS. “I think we have a true golden age for America.”

Keeping energy promises: In May, President Trump issued four executive orders that seek “to quadruple nuclear power in the U.S. by 2050,” CNBC reports. “The president called for the U.S. to have 10 large nuclear reactors under construction by 2030.”

The event: The event at which the announcements were made featured panel discussions with energy and technology industry leaders, including Toby Rice, president and CEO of energy company EQT Corporation, and Amazon Web Services CEO Matt Garman.

• In June, Amazon announced a $20 billion investment in data centers in Pennsylvania, according to CBS.

Why it’s important: With the fast pace of data center construction and the rapid adoption across industries of energy-intensive generative artificial intelligence, the U.S. must expand baseload power generation capabilities, the NAM said.

• “Westinghouse’s announcement of 10 new nuclear reactors in the U.S. marks the start of a fulfillment of a promise made by President Trump,” said NAM Director of Energy and Resources Policy Michael Davin. “Nuclear energy is safe, carbon-free and available 24 hours a day, year-round. It’s a critical component of the energy future we need to keep manufacturing in the U.S. thriving.”

Like many manufacturing sectors, the aerospace industry is facing an alarming workforce shortage: its ranks of certified mechanics are aging rapidly, and the sector needs many more young people to fill available jobs (CNBC).

By the numbers: “The average age of a certified aircraft mechanic in the U.S. is 54, and 40% of them are over the age of 60, according to a joint 2024 report from the Aviation Technician Education Council and consulting firm Oliver Wyman, which cites Federal Aviation Administration data.”

• “The U.S. will be short 25,000 aircraft technicians by 2028, according to the report.”

High-paying jobs: The industry offers excellent salaries, an inducement for prospective employees, CNBC points out.

• “Median pay for aircraft technicians or mechanics was $79,140 a year in the U.S. in 2024, compared with a nationwide median income of $49,500, according to the Bureau of Labor Statistics.”

Manufacturing as a whole: The aerospace industry’s worker shortage is part of a larger labor crisis in manufacturing, which could need as many as 3.8 million new employees by 2033, according to a Deloitte and Manufacturing Institute study from last year.

• The study found that 1.9 million jobs could be left unfilled, underscoring the urgency of attracting more young people to the industry.

MI at work: Through initiatives like Heroes MAKE America, the MI, the workforce development and education affiliate of the NAM, is helping veterans and other Americans with applicable skills transition into jobs in the industry.

• HMA prepares transitioning service members and members of the military community for manufacturing careers.

Heroes in aerospace: The MI’s partners include major aerospace firms Textron Aviation and Gulfstream Aerospace Corporation. Earlier this year, HMA launched a new FAA Airframe & Powerplant certification training program to help fill the critical industry need for A&P mechanics.

• The program is offered at two locations. The first is in Wichita, Kansas, near McConnell Air Force Base, supported by Textron Aviation and delivered in partnership with Wichita State University’s Campus of Applied Sciences and Technology.
• The second location is in Georgia near Fort Stewart, in partnership with Gulfstream Aerospace Corporation and Savannah Technical College.
• The program offers an accelerated six-week course to fast-track participants toward FAA A&P certification, helping qualified service members become more capable and mission-ready during their military service and providing a steady pipeline of skilled talent for the aviation industry.

The last word: “Heroes MAKE America and our new Airframe & Powerplant certification program are critical to closing the aerospace skills gap,” said MI President and Executive Director Carolyn Lee.

• “By equipping transitioning service members with the specialized training they need, we’re creating an effective pathway to high-demand, certified aircraft mechanic jobs. These initiatives not only support our veterans but also build a skilled, ready workforce that the aerospace industry urgently needs to thrive.”

“To put it simply, investments in infrastructure are investments in manufacturing,” Husco President and CEO and NAM Executive Committee member Austin Ramirez told the Senate this week.

What’s going on: “Modern, dependable transportation helps manufacturers make and move our products,” Ramirez, whose company makes hydraulic and electromechanical control systems, told the Senate Committee on Environment and Public Works at a Wednesday hearing on crafting the next highway bill.

• Infrastructure projects “generate productivity gains and induce demand for manufacturing goods—stimulating the economy and bolstering American competitiveness,” said Ramirez.

Funding in action: Husco has seen firsthand the benefits of robust infrastructure investments, Ramirez continued.

• “Our customers are in the automotive and construction industries. And Husco families drive over the roads and bridges improved by highway projects. Several are turning dirt this year in Waukesha County.”

Why it’s crucial: Failure to reauthorize key surface transportation programs would result in interruption of these critical investments in U.S. roads and bridges, hitting manufacturers hard, Ramirez told the committee.

• “We cannot go back to the fits and starts of highway bill extensions. Our industry needs certainty to invest, plan and hire in America.”

Permitting reform: Ramirez also explained how America’s “complex permitting laws impact investment decisions” and encouraged the committee to adopt comprehensive permitting reforms that expedite project approvals and put a stop to “endless litigation.”

What should be done: Policymakers should “seize the opportunity” to make “robust investments in our surface transportation infrastructure,” Ramirez said. This should include efforts to strengthen the Highway Trust Fund, expand highway capacity and connectivity, implement intermodal improvements to bolster the country’s freight network and enact much-needed permitting reform.

Other voices: Other manufacturers recently sat down with the NAM and United for Infrastructure, where the NAM serves as a steering committee member, to discuss how infrastructure impacts their businesses. Leaders from CRH, Nucor and Fluor—sponsors of the NAM’s and United for Infrastructure’s Infrastructure Week kickoff event—spoke about the importance of infrastructure investments and modernizing our infrastructure to keep products moving and manufacturers operating.

• “As we look at reauthorizing the [Infrastructure Investment and Jobs Act] a really important piece of that was the higher baseline for federal highway formula funding, which we know through our experience with state DOTs needs to continue to grow in order to meet the needs of growing states,” said Fluor Senior Director of Government Relations Nathan Robinson.
• “If we’re going to truly harness the power of what AI is going to bring us, what machine learning’s going to bring us, all the things that truly are the future [of the] economy, we’ve got to get the way we move people and goods around in much better shape,” said Nucor Executive Vice President of Business Services Ben Pickett.
• “Permitting reform has absolutely got to happen for us. We’d like to see … a less prescriptive bill and more money go to the states through [the] funding formula. … When states have funding security and certainty, then they’re able to go raise revenues,” said CRH Executive Vice President of Government Relations Ryan Lindsey.

The last word: “Our industry depends on a robust, modern, efficient transportation system—and you can promote domestic manufacturing by getting a highway bill done this Congress,” Ramirez concluded.

Endless litigation has delayed much-needed American infrastructure development for decades—and that has to stop, as the NAM and manufacturers have long argued. The Washington Post (subscription) editorial board makes the case that Congress must step up and fix the permitting process to unlock American investment and growth.

Recent developments: The recent Supreme Court ruling that limited the National Environmental Policy Act—in which the NAM filed an amicus brief—is a step in the right direction.

• In that case, “The court decided that the U.S. Surface Transportation Board could approve an 88-mile train track even if it might move crude oil from Utah to refineries on the Gulf Coast,” the Post noted. “The board didn’t have to assess the potential future impacts if the new track encouraged more oil drilling on one end and more oil refining on the other.”
• In other words, environmental review was limited to the environmental impact of the project itself—as intended by the statute—rather than a more expansive investigation into the potential uses of the finished project.

A long-standing problem: Gaming the permitting process to stop development is nothing new.

• “In the 1970s, a ‘new’ species of freshwater fish called the snail darter was discovered during NEPA research into the building of the Tellico Dam in Tennessee.”
• “For the project to be completed, Congress had to exempt it from the Endangered Species Act. It turned out that the fish was not endangered. It wasn’t a separate species. Opponents of the dam ‘discovered’ it to get the dam stopped.”

More at risk: Numerous infrastructure projects are still in limbo today due to this sort of maneuvering by groups seeking to delay needed investments.

• “A flower called Tiehm’s buckwheat might stand in the way of a Nevada lithium mine green-lit by the Biden administration,” for example.
• But, as the Post noted, “Maybe the idea of protecting every ecosystem at any cost should be reconsidered. The flower, which apparently grows only on 10 acres in the proposed mine’s footprint, is a close relative of other buckwheats. Is it a distinct species? Perhaps it could be grown elsewhere?”
• And another important question: “Perhaps the battle against climate change—which will require lithium to build lithium-ion batteries to power electric vehicles—should take precedence?”

Calling on Congress: “NEPA review had grown to require every government decision to survive endless judicial challenges, poorly serving the nation and the natural environment in which it sits. Congress should not leave it to courts to fix,” the Post concluded.

The NAM agrees: “Comprehensive permitting reform is essential to building a strong and more competitive manufacturing economy. As [the Post] notes, Congress should reevaluate environmental impact reviews in order to ease construction of critical infrastructure projects,” said NAM Managing Vice President of Policy Charles Crain on X.

The Food and Drug Administration is considering a scientifically flawed method for detection of asbestos in talc-containing cosmetics products—a move that could have far-reaching implications across the manufacturing sector.

What’s going on: In December, the FDA published a proposed rule for detecting and identifying asbestos, as required by the Modernization of Cosmetics Regulation Act of 2022. But the proposal is based on unsound science that could limit companies’ ability to utilize talc, a key manufacturing input.

• The overinclusive testing methodology prescribed in the rule is highly likely to misidentify non-asbestos minerals as asbestos. That means that a “positive” test could classify talc as contaminated with asbestos—even if no asbestos is present.
• In May, the FDA held a roundtable discussion on the safety of talc, at which participants discussed the merits of expanding this de facto talc ban beyond cosmetics and to most if not all products and manufacturing processes.

Why the NAM is concerned: Beyond cosmetics, talc is used in a wide variety of industries—including pharmaceuticals, food, plastics, paper, automotives, rubber, roofing, paint, coatings, pottery and ceramics. It is also commonly used on shop floors throughout the industry.

• For many companies, talc substitutions may be inferior or may not exist at all.
• In addition, an FDA-endorsed standard prone to false positives is highly likely to distort other agencies’ asbestos detection testing methods and exposure analysis.

The NAM says: The FDA should withdraw the proposed standard and publish a new rule that contains scientifically sound and accurate testing methods.

• “Manufacturers support the use of sound science,” said NAM Managing Vice President of Policy Charles Crain. “The FDA has the opportunity to repromulgate this flawed rule to provide for accurate, science-based testing that actually protects consumers—rather than a flawed standard that could have far-reaching and costly consequences throughout the manufacturing industry.”

SkyWater Technology is leading the effort to rebuild domestic semiconductor manufacturing in the United States. As the only U.S. investor-owned and -operated pure-play semiconductor foundry in the U.S., SkyWater plays a critical role in reshoring key parts of the global supply chain and reducing America’s reliance on foreign-made chips.

The approach: SkyWater’s approach goes beyond traditional manufacturing. Its “Technology as a Service” model combines advanced R&D with wafer fabrication, allowing customers to co-develop new technologies using custom manufacturing processes.

• This collaborative model accelerates innovation and enables a flexible, secure production pipeline for customers, so they don’t have to build their own fabrication infrastructure.

The expansion: Today, SkyWater is expanding its U.S. footprint. The company recently finalized its acquisition of Infineon Technologies’ semiconductor fab in Austin, Texas—an investment that will allow SkyWater to scale its operations, support commercial and government partners and create a more complete domestic supply chain from chip design through packaging and testing.

• “The United States has operated in a global supply chain with regional centers of excellence—but now, those regional centers are getting reconfigured,” said SkyWater CEO Thomas Sonderman. “That comes with new opportunities.”

The challenge: Still, semiconductor manufacturing also comes with significant financial challenges. The industry is capital intensive, and investments in new infrastructure or equipment can require years of lead time and billions of dollars.

• That’s why federal support through stable and predictable tax policy is essential to SkyWater’s success—and to America’s semiconductor future, said Sonderman.

The policy: SkyWater welcomed Congress’s recent passage of the reconciliation package that made permanent vital pro-manufacturing tax provisions, including immediate R&D expensing and full capital equipment expensing. The law also increased the advanced manufacturing investment credit, an incentive for semiconductor manufacturing, from 25% to 35%.

• “In our industry, if you don’t stay at the leading edge, somebody will pass you by,” said Sonderman. “The United States is in a vulnerable state now, because we’re telling people we want to make stuff in the U.S., but we don’t have the capabilities to make stuff in the U.S. at scale today.”
• “Having the tax incentives is absolutely critical,” he emphasized. “If they go away, it’ll be much harder to establish manufacturing independence for the United States.”

The competition: The stakes are high. China leads the world in chipmaking investments, according to industry researchers, and the U.S. cannot afford to fall behind. And as Sonderman put it, tax incentives aren’t just about finance—they’re about building national capability and ensuring the next generation of technology is made in America.

• “The money is important,” said Sonderman. “But the money is not as important as the commitment.”