Nine trade groups, including the Edison Electric Institute (EEI), the American Public Power Association (APPA), and the National Rural Electric Cooperative Association (NRECA), have jointly written a letter to President Biden, drawing attention to the critical shortage of electrical steel and its impact on the power sector.

In their appeal, the groups emphasize the need for a sustainable supply of electrical steel to ensure U.S. national and economic security. They highlight that shortages are leading to significant and persistent supply chain challenges.

The trade groups underline the unprecedented demand for electrical steel driven by the need for electrification, grid modernization, and resilience initiatives. They stress that the federal government should recognize and support domestic production to meet the ambitious goals set forth in the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). The letter also calls for guaranteed purchases of electrical steel and incentives to expand manufacturing capacity.

To address the supply chain crisis, the trade groups propose convening an "Electrical Steel Summit" that brings together key stakeholders from the power sector, electrical and steel manufacturers, automobile manufacturers, labor unions, home builders, and others. This summit aims to facilitate a strategic discussion on the challenges faced in sustaining and growing domestic production of electrical steel, with the goal of supporting the administration's objectives for electrification and decarbonization.

The power sector trade groups' letter highlights the urgent need for government intervention to address the electrical steel shortage, which affects industries such as electric vehicles, utilities' power restoration efforts, and new construction projects. By recognizing the significance of domestic production and collaborating with key stakeholders, the groups hope to find solutions that ensure a reliable supply of electrical steel for the nation's critical electrical industries and support the transition to a more electrified economy.

Source: powermag.com