Reassessing Supply Chains
Emil Michael, the Under Secretary of War, stated on Tuesday that the Trump administration is working to bring back essential supply chains that have been moved offshore over the past several decades.
During a policy event hosted by Breitbart News in Washington, titled “AI Is Here: What to Fear, What to Embrace,” Michael, who holds the position of chief technology officer at the Department of War, highlighted the nation’s growing reliance on foreign entities for crucial items such as batteries, magnets, essential minerals, and pharmaceuticals.
He posed a thought-provoking question to the audience.
“How did we reach a point where this country, recognized as the greatest economic powerhouse in history, has become overly dependent on an adversary for its vital needs?” he asked.
According to Michael, this dependency was based on the flawed assumption that major global conflicts were a thing of the past, with the repercussions affecting American communities.
“We offshored these essential capabilities, and as a result, many communities have suffered,” he remarked. “So, what’s the way forward? We need to bring back those capabilities, not everything, but the ones that are critical.”
Michael indicated that the focus is on chips, minerals, and batteries.
“We are actively working on reshoring pivotal elements of the supply chain so we can achieve self-sufficiency,” he noted.
Facilities for chip production are being developed in Arizona and Ohio. New missile manufacturing facilities will require skilled machinists and metal workers. The growth of data centers also necessitates access to electricity, gas turbine power, and adequate infrastructure. The initiative for critical minerals will involve developing mines, refining operations, transportation facilities, and production workshops.
Michael pointed out a significant shortage of electricians and metal workers, estimating that these positions can pay over $100,000, and in some scenarios, even exceed $200,000.
He then shared a prediction that diverges from typical expectations regarding the technology landscape.
“If anything, the demand for blue-collar jobs will rise due to artificial intelligence,” Michael stated. “That’s a shift we haven’t encountered in the last 25 years.”
He expressed concern that the opposition to data centers neglects the job opportunities they could offer.
“It’s intriguing to see an opposition to data centers, yet they will create incredible opportunities for blue-collar workers,” he said.
The administration has reported signing or approving 160 mineral deals totaling nearly $40 billion since January 2025. The latest announcement came on August 7, when Trump unveiled over $2 billion in investments during a White House mining roundtable. The Department of War’s contributions include $1.4 billion allocated for battery anode manufacturer Sila Nanotechnologies and $150 million for Niron Magnetics, a company that produces magnets without relying on rare earth materials.
On the day prior to the event, Michael visited the Oshkosh Corporation plant in Wisconsin. Defense Secretary Pete Hegseth also toured the facility as part of the Pentagon’s “Arsenal of Freedom” initiative. Oshkosh Defense has manufactured over 25,000 Joint Light Tactical Vehicles since receiving the initial contract in 2015.
