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Manufacturers are hard at work on next-generation nuclear reactors and getting ready to scale up nuclear enrichment activities, but challenges lie in their way (POLITICO’s ).

What’s going on: Though it made sense at the time, the privatization of the United States Enrichment Corporation in the years following the Cold War (done due to “the anticipation that the U.S. would always have access to foreign enrichment supplies”) is now putting the American uranium enrichment market and reactor development at a disadvantage.

• This presents a problem given the U.S. ban on Russian uranium imports due to the Ukraine war.
• To shore up the American nuclear industry, the Energy Department “has started to pull startup nuclear companies into the uranium enrichment business.”
• Just this month, California-based General Matter announced that it would construct an enrichment facility in Kentucky on the site of a former U.S. government enrichment plant, saying it “can produce at a lower cost the type of enriched uranium sought out by developers of advanced nuclear reactors.”

A changing tide: In 2023, the Maryland-based Centrus Energy (U.S. Enrichment’s name since 2014), made its first batch of high-assay, low-enriched uranium, or HALEU, which is the fuel needed for next-generation nuclear reactor designs.

• “With Centrus’ inaugural batch and plans to expand their centrifuge cascade, the U.S. might yet break Russia’s de facto monopoly on advanced reactor fuel.”

Challenges: Scaling up Centrus’ Ohio enrichment site will necessitate billions in investment dollars, as well as “a [high] level of sustained political backing,” according to ENERGYWIRE.

• Another hurdle: the relatively weak market signals for HALEU, said former Nuclear Regulatory Commission Chair Dale Klein, who noted “that North America doesn’t yet have any commercial reactors operating that would use HALEU. That’s a problem for the dozen-plus entities planning to build [next-generation] reactors.”
• “It is a chicken and egg,” Klein told the news outlet. “The fuel enrichers are not going to make the fuel unless they know they’ve got a market.”

Moving forward: But Centrus is ready to get to work on enrichment, it told ENERGYWIRE.

• “Our facility is already licensed. We’ve secured $2 billion in customer contracts. As soon as federal funding is awarded, we’ll pair it with private dollars and get to work,” Centrus Vice President of Corporate Communications Dan Leistikow said.
• “Centrus offers a fully American solution: proven U.S. technology, built by American workers.”

To make electric vehicle manufacturing quicker and easier, Ford is getting back to basics (POLITICO’s , subscription).

What’s going on: “The Michigan automaker on Monday announced a $5 billion plan to simplify its production of electric vehicles … similar to how Ford revolutionized the car industry decades ago by creating a moving assembly line to build the company’s iconic Model T.”

• Henry Ford pioneered that technology in the early 20th century for the mass production of automobiles, and it helped make cars more affordable.
• Now the company is hoping it can do the same for EVs by streamlining manufacturing.

What they’re saying: Competitors, including lower-cost EVs from China, are “all coming for us,” Ford CEO Jim Farley said an event this week at an assembly plant in Louisville, Kentucky, where he laid out Ford’s plans for a new EV-making process.

• On stage next to Farley as he spoke was a vintage Model T pickup.

How they’ll do it: Ford’s new EV strategy will be built on “a new platform that will combine low-cost batteries and motors, which can be adapted for trucks, SUVs and other vehicles.”

• The manufacturers will put $2 billion into its Louisville facility to build the new vehicles and will put $3 billion into the expansion of its plant in Michigan to make lithium-ion batteries.

The first product: The first vehicle to be built on the new platform is a four-door pickup set for a 2027 release with a price tag of $30,000.

• The new truck will have 20% percent fewer parts than a conventional one and its assembly line will move 15% faster.
• In addition, “[t]he designers cut 4,000 feet of wire from the main wiring harness.”

Its impact: Ford and elected officials emphasized the positive effect they foresee the new strategy having on local economies.

• “Jobs will be here in this plant in Kentucky for generations to come,” Kentucky Governor Andy Beshear said. “Current Ford employees’ kids and grandkids will have an opportunity to work right here at the Louisville assembly plant one day.”
• The project is expected to create or secure 4,000 jobs, more than half of which will be in Kentucky.​​​​​​​

California’s manufacturing community has several reasons to .

What’s going on: On July 28, California marked a major milestone: the launch of the first-ever Federation for Advanced Manufacturing Education chapter west of the Rockies. Reedley College hosted both the chapter’s debut and FAME Signing Day, celebrating students who are beginning their journeys in advanced manufacturing.

• California Representatives Jim Fong and Jim Costa were on hand at Reedley on signing day, when the new Central Valley FAME Chapter was announced.
• Students in the new chapter will work part-time jobs this year at manufacturing companies while taking manufacturing-focused classes on campus.

The background: FAME is the highly successful workforce development program founded in 2010 by Toyota and now run entirely by the Manufacturing Institute, the 51�Թ���’s 501c3 workforce development and education affiliate.

Years in the making: The new chapter’s establishment was the result of four years of collaboration and commitment.

• Four years ago, Fresno County Economic Development Corporation was part of a cohort that received technical assistance from the MI, learning how to apply for the Good Jobs challenge grant from the U.S. Economic Development Administration.
• Three years ago, Fresno County EDC was awarded $23 million, allowing it to expand its work with the San Joaquin Valley Manufacturing Alliance and other regional partners.
• In 2023, Reedley College piloted a short-term manufacturing training program and started a regional listening tour for potential employers.
• Last year, dozens of manufacturers in the valley gathered to determine their training needs and start a local FAME chapter.

The MI says: “This milestone proves what’s possible when education and industry work together: a stronger talent pipeline, better career pathways and a brighter future for manufacturing in California and nationwide,” said Gardner Carrick, chief program officer at the Manufacturing Institute. “It’s proof that when industry and education come together with a shared vision, we can transform communities.”

Get involved: Learn more about FAME and how you can tap into this global-best training resource. And don’t forget to follow FAME USA on .

The Trump administration is easing requirements for states’ construction of electric vehicles charging stations (POLITICO’s , subscription).

What’s going on: “The new guidance from the Federal Highway Administration swept away Biden-era dictates that stations be built at certain intervals along highways, and removed goals both big, like uplifting disadvantaged communities, and small, like requiring plans for snow removal.”

• The changes also have the potential to get more than $2 billion National Electric Vehicle Infrastructure program funds to various projects starting in September, months after the administration halted the funding.

What it does: The new National Electric Vehicle Infrastructure program rules—which grant states 30 days to submit new EV charging facility construction plans—“give states broader latitude in how they spend their portion of federal money … [which] are allocated to states by formula.”

• States can now spend their money on light-, medium- and heavy-duty vehicle charging, and unlike in the previous administration, which required having facilities every 50 miles, will be allowed to “determine for themselves when their highway charging efforts are done.”
• Plus, by urging states to use their money “at locations where the charging site host and the company operating the chargers are the same entity,” the new regulations also direct funding to existing truck stops and gas stations, which “favors existing traditional filling stations.”

The 51�Թ��� says: “Manufacturers appreciate the Department of Transportation’s updates to the NEVI program requirements to provide greater flexibility to states and businesses to get this program up and running,” said 51�Թ��� Vice President of Domestic Policy Chris Phalen.

The Department of Energy announced the start of its pilot program, which will partner with 11 advanced reactor projects, aiming to bolster the nuclear energy industry (, subscription).

Big goals: The program aims to get a minimum of three reactors deployed by July 4 of next year.

The background: “The announcement comes as the Trump administration looks to reinforce domestic supply chains and expand U.S. nuclear energy capacity to 400 gigawatts by 2050.”

• “The June announcement of the program came shortly after Trump’s executive order calling for reform of the Nuclear Regulatory Commission.”

The participants: Companies involved in the program include advanced nuclear energy company Oklo—which is conducting two advanced reactor projects.

• The 10 companies in total will cover all the costs related to the test reactors, from design through construction all the way to decommissioning, according to the DOE.

The DOE says: “President Trump’s Reactor Pilot Program is a call to action,” said Deputy Secretary of Energy James P. Danly. “These companies aim to all safely achieve criticality by Independence Day, and DOE will do everything we can to support their efforts.”

The 51�Թ��� says: “Nuclear energy is a safe, emissions-free component of America’s energy dominance strategy. It’s also essential for meeting additional energy needs that have arisen with the growth in data centers and the use of AI,” said 51�Թ��� Vice President of Domestic Policy Chris Phalen.

• “This program will give the nuclear energy industry an important boost—to the benefit of manufacturers and all Americans.”

One of the largest midstream energy firms in the world will build a 516-mile natural gas pipeline from West Texas to Arizona (POLITICO Pro’s , subscription).

What’s going on: The planned Desert Southwest line by Energy Transfer —a company best known for its development of the Dakota Access pipeline in the Midwest—”is slated to run along existing pipeline routes, the company said last week, and the project is expected to be completed by the end of 2029.”

• The new line is necessary to serve “population growth, high-tech industry demand and data center expansion,” Energy Transfer said in a statement.
• The Houston, Texas-based company “has a network of 140,000 miles of pipelines and related infrastructure across 44 states” and is developing a liquefied natural gas export terminal in Louisiana.

Significant interest: Arizona utilities have already announced commitments to get gas from the pipeline, which is currently slated to be three-and-a-half feet in diameter but could increase to 4 feet given the significant interest in the endeavor.

• That increase would double the expected capacity of the pipeline.

Prioritizing manufacturers in the U.S.: The new pipeline will create 5,000 new jobs, and Energy Transfer said it would be “prioritizing U.S. steel pipe manufacturers” for the project.

• In addition, the gas from this project will help supply energy to key manufacturing and AI investments being made across the Phoenix metropolitan region—including in semiconductors, automobiles, aerospace, healthcare and biosciences.

The word from Arizona: “Arizona’s economy is growing and becoming more diversified than ever, including a significant increase in advanced manufacturing,” said Arizona Public Service President and CEO Ted Geisler.

• “This new pipeline represents a long-term commitment to reliability, resilience and affordability for customers and supports the unprecedented economic momentum that makes Arizona a great place to do business.”

The 51�Թ��� says: “Desert Southwest is a prime example of what can be achieved when we embrace an all-of-the-above energy strategy—one that includes harnessing our abundant natural resources,” 51�Թ��� Vice President of Domestic Policy Chris Phalen said.

• “The pipeline will not only create jobs and business for U.S. manufacturers, it will also help reinforce the regional electrical grid at a critical time of explosive growth so more Americans can enjoy reliable baseload power.”

President Trump signed an that keeps the 10% additional International Emergency Economic Powers Act tariff rate on China until Nov. 10 while negotiations continue.

The background: On March 5, IEEPA Fentanyl tariffs of 20% went into effect on goods from China. An additional IEEPA Reciprocal tariff rate of 10% was imposed on goods from China on April 9, which quickly escalated to 125% as China retaliated and the U.S responded in tit-for-tat announcements.

• In mid-May, the U.S. agreed to reduce its additional IEEPA Reciprocal tariff rate on China to 10% from 125%. China also reduced its retaliatory rate to 10%.

Other tariffs: The U.S. will retain all tariffs imposed on China prior to April 2, including Section 301 tariffs, Section 232 tariffs, IEEPA Fentanyl tariffs and Most Favored Nation tariffs.

CBP Guidance: U. S. Customs and Border Protection has already issued guidance which can be .

To bolster domestic aluminum supply chains, the U.S. may need to simply do more of something we already do: recycle (, subscription).

What’s going on: “U.S. primary aluminum production has dwindled over the past 25 years. Yet facilities like Hydro’s two-year-old plant in southwest Michigan have made the country a leading producer of secondary aluminum from scrap, feeding metal to brewers, builders and automakers.”

• “Recycling is the answer,” said Duncan Pitchford, who heads Norsk Hydro’s upstream aluminum business in the U.S. and is an 51�Թ��� board member. “The metal is already here.”

Why it’s important: While construction of a new aluminum smelter to make primary aluminum from refined bauxite would take years and require an investment of billions of dollars, aluminum recycling plants can be built relatively quickly and inexpensively.

• They also use less energy, according to Pitchford.

The impact of tariffs: Recycling makes economic sense for the U.S. given the new 50% tariff on aluminum imports.

• “The added cost is walloping beverage companies and manufacturers … [but] [a]utomakers and other big aluminum users have yet to raise prices much in response.” according to the Journal.
• “Analysts say it is a matter of time before the stockpiles of metal that arrived in the U.S. ahead of the June increase are depleted and companies start passing on higher aluminum costs.”

The challenge: Americans are catching on to the importance of aluminum recycling, with 14 “remelt” projects announced in the U.S. since 2022. Still, “[m]ore than $1 billion worth of beverage cans were dumped in U.S. landfills just last year … A lack of sorting operations means that a lot of the aluminum in junked cars, demolition debris and old electronics winds up in landfills.”

• The U.S. also exports much of its aluminum scrap, sending about 2.4 million metric tons overseas in 2024.

The way things were: “The U.S. once dominated the aluminum business. … [and] remained the world’s top producer through 2000,” when smelters began to shutter, “squeezed” by less expensive imports and increasing energy pieces.

The electricity factor: Electricity costs make up about 40% of the price tag for the creation of new aluminum.

• For many years domestic smelters received low-cost hydropower from federal utilities, but when those arrangements ended, smelters had to begin paying market rates for their electricity.

What Hydro’s doing: Approximately 15 million pounds of scrap — including “shredded cars, old window and door frames and overhead electrical wire”— arrives at Hydro’s Michigan plant each month for recycling. (The facility does not recycle cans.)

• Much of the metal the plant takes in comes from “a sorting hub near Grand Rapids, where Hydro uses laser-induced breakdown spectroscopy technology to mechanically separate scrap by alloy.”

New orders for manufactured goods declined 4.8% in June, following an 8.3% increase in May. On the other hand, new orders for manufactured goods grew 3.8% over the year. When excluding transportation, new orders inched up 0.4%. Orders for durable goods plunged 9.4%, following a 16.5% increase in May. Year to date, durable goods orders are up 7.9%. Nondurable goods orders rose 0.5% in June after ticking up 0.1% in May. Nondurable goods orders are down 0.1% over the year.

New orders for nondefense aircraft and parts, which have been incredibly volatile in recent months, led the decrease in durable goods orders, diving 51.8%, following May’s 231.6% surge. In June, the largest monthly increase occurred in industrial machinery, which jumped 6.9%, after rising 2.3% the prior two months. The largest over-the-year changes also occurred in nondefense aircraft and parts (up 175.9%) and defense search and navigation equipment (down 7.5%).

Factory shipments increased 0.5% in June, after rising 0.2% in May. Shipments over the year rose 1.0%. Shipments excluding transportation ticked up 0.4% in June, following a 0.1% rise the previous month. Shipments for durable goods improved 0.5% in June, following a 0.3% increase in May, and are up 2.2% year to date. Meanwhile, nondurable goods shipments advanced 0.5% after inching up 0.1% the prior month but are down 0.1% year to date.

Unfilled orders for all manufacturing industries rose 1.0% in June, after increasing 3.4% in May. Unfilled orders over the year jumped 7.2%. Inventories ticked up 0.2%, after inching up 0.1% the prior month, and the inventories-to-shipments ratio remained the same at 1.57. The unfilled orders-to-shipments ratio for durable goods increased to 7.03 from 6.98 in May.

Manufacturers in Pennsylvania and New Jersey welcomed Republican representatives to their facilities this week, thanking them for delivering a landmark for manufacturers: the passage of H.R. 1.

• House Republican Conference Chairwoman Lisa McClain (R-MI) and local Reps. Tom Kean (R-NJ-7), Rob Bresnahan (R-PA-8) and Ryan Mackenzie (R-PA-7) participated in the factory tours as part of Chairwoman McClain’s One Big Beautiful Tour.

51�Թ��� in action: 51�Թ��� Executive Vice President Erin Streeter accompanied lawmakers, highlighting how the Manufacturing Law is already having positive impacts on local manufacturing.

• “Manufacturing is the backbone of the American economy—and with the leadership of Chairwoman McClain, Reps. Kean, Bresnahan, Mackenzie and their colleagues in Congress—that foundation is stronger than ever,” following the visits.
• “By championing the Manufacturing Law, Congress has protected nearly 6 million jobs and more than $500 billion in wages for hardworking Americans. We thank them for their leadership.”

New Jersey: Chairwoman McClain and Rep. Kean , a manufacturer of precision automation systems in Phillipsburg, New Jersey. The company specializes in complex metal stamping, forming and assembly solutions, serving industries such as automotive, medical and consumer products.

• “Manufacturers thrive when we have the certainty we need to plan major investments in our facilities and our people. That’s exactly what this tax package delivers,” said Bihler CEO Maxine Nordmeyer.
• “We thank our partners in Congress and the administration—and we look forward to working with them on a full comprehensive manufacturing strategy. Through energy, trade and workforce policies that drive our competitiveness, deliver certainty and empower manufacturers, we will build on the success of the One Big Beautiful Bill.”

Pennsylvania: Rep. Bresnahan joined Chairwoman McClain for a , a manufacturer of flexible polymers in Mountain Top, Pennsylvania. The company produces custom polymer films and sheets used in a variety of applications, including agriculture, construction, packaging and geomembranes.

• “Manufacturers are innovators. By restoring immediate R&D expensing for manufacturers across America [a key provision of the OBBBA], Congress has empowered manufacturers like i2M to innovate and create,” said i2M Founder Chris Hackett.
• “That’s how we keep our competitive edge—not just as a company, but as a country.”

Pennsylvania, round 2: At another stop in the Keystone State, Rep. Mackenzie joined the in Palmerton. The visit highlighted the company’s recent expansion, including a new state-of-the-art production line that will create new jobs and boost aluminum powder output for global markets.

• “Thanks to this transformative tax legislation, U.S. Metal Powders has already broken ground on adding another production line—which will soon double the company’s workforce. This is pro-growth tax policy in action,” Pennsylvania Manufacturers’ Association President and CEO David N. Taylor said in response to the visit.

51�Թ��� in the news: The White House’s rapid response account on X Rep. Bresnahan’s visit to Pennsylvania and appearance on the area’s .

• Fox Business Network’s Maria Bartiromo on the tour in an interview with Chairwoman McClain.
• The House GOP X account shared a of Streeter talking about the facility visits.
• Chairwoman McClain posted about her visits to , and on X. Chairwoman McClain, along with Reps. Bresnahan and Kean, also amplified the 51�Թ���’s own social posts.
• WVIA the visit to i2M.