Cortez Masto, Mullin, Graham Push Legislation to Protect National Security, Strengthen U.S. Supply Chain for Rare Earth Magnets
Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.), Markwayne Mullin (R-Okla.), and Lindsey Graham (R-S.C.) introduced legislation to strengthen the domestic supply chain for rare earth magnets, which are critical components of cell phones, computers, defense systems, and vehicles, but are almost exclusively made in China.
Over 15% of the world’s rare earth minerals are mined and processed at the Mountain Pass 15 miles outside Primm, Nevada, which employs approximately 600 Nevadans. However, China controls 90% of the world’s manufacturing of these materials into magnets, which are critical to national defense and the U.S. economy. Cortez Masto’s legislation will help build the U.S. supply chain for these minerals by creating a tax credit for companies processing these rare earth oxides and manufacturing the magnets necessary to power American technology.
“If we want to combat the influence of the Chinese Communist Party and strengthen our national security, we need to stop relying on China to power our defense and energy systems,” said Senator Cortez Masto. “This bipartisan bill will create American jobs and help fill critical gaps in our domestic supply chain.
”“Mineral security is national security. The days of fully relying on adversaries for critical resources are over,” said Senator Mullin. “Rare earth magnets, such as Neodymium (NdFeB), are essential for countless applications including missile guidance, fighter aircraft, computer hard drives, audio equipment, MRI devices, and other economically critical technology. That is why bolstering our domestic rare earth magnet manufacturing capability is key to defending our nation and ensuring we have a strong economy. I’m proud to lead in this effort, alongside my colleagues, to strengthen our supply.
”The Rare Earth Magnet Security Act would provide a $20 per kilogram production tax credit for high performance magnets that are manufactured in the U.S. and increase the credit to $30 per kilogram for magnets manufactured in the U.S. whose components are produced, recycled, or reclaimed domestically. Companion legislation introduced in the U.S. House of Representatives by Congressmen Guy Reschenthaler (R-Penn.-14) and Eric Swalwell (D-Calif.-15) was included in last year’s House Select Committee on China’s report on how to counter the influence of the Chinese Communist Party.
Senator Cortez Masto has led efforts in Congress to support Nevada’s critical mineral and mining industries, supporting tens of thousands of local jobs and paving the way for Nevada to power the clean energy economy. She has consistently blocked burdensome taxes on mining and wrote important provisions of the Bipartisan Infrastructure Law to bolster Nevada’s critical mineral supply chain and fund battery recycling and manufacturing programs in the state.
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