Rare Earth Magnet Market Revitalization Act

Congress finds the following:

(1) Price and market manipulation by the People’s Republic of China has reduced the incentive for private investment in rare earth magnet processing, refining, and production in the United States and partner countries.

(2) This has created unacceptable vulnerabilities to the supply chains for commercial and military products that rely upon rare earth magnets.

It is the sense of Congress that the Secretary of Commerce should be empowered to ensure that United States-based manufacturers acquire rare earth magnets from United States or partner sources to the extent they are available.

The President, acting through the Secretary of Commerce, shall take such steps as may be necessary to ensure that, except as provided in subsection (b), no articles are imported into the customs territory of the United States that—

(1) are rare earth components or rare earth magnets originating from one or more covered nations; or

(2) incorporate rare earth magnets originating from one or more covered nations.

Except as provided in subparagraph (B), the Secretary shall waive the prohibition under subsection (a) on a case-by-case basis upon certification by the importer that—

(i) with respect to the importation of rare earth components or rare earth magnets, such articles cannot be practicably sourced from a country that is not a covered nation; or

(ii) with respect to an article incorporating rare earth magnets, such article cannot be practicably assembled without the incorporation of rare earth magnets originating from one or more covered nations.

The Secretary may elect not to waive the prohibition despite a certification under subparagraph (A) if the Secretary determines that alternative practicable sourcing is available for the relevant article or articles.

The Secretary may waive the prohibition under subsection (a) on a case-by-case basis if the Secretary determines that such waiver is in the national interest.

The Secretary shall publish, on a publicly available website of the Department of Commerce, a list of each importer that has received a waiver under this subsection, along with the amount and type of rare earth magnets imported pursuant to such waiver. The Secretary shall also publish to such website on an annual basis an aggregate report describing the waivers granted during the preceding year.

The limitation under this section shall apply with respect to articles imported into the customs territory of the United States after the date that is 1 year after the date of the enactment of this Act.

Subject to the availability of appropriations and to such regulations as the Secretary of Commerce may promulgate, the Secretary is authorized to provide Federal financial assistance in the form of offtake agreements or price guarantees to any nongovernmental entity the Secretary determines has invested in facilities and equipment for the manufacturing, production, processing, or recycling of rare earth components or rare earth magnets in countries that are not covered nations.

Not later than 30 days after making any award of assistance pursuant to the authorization under subsection (a), the Secretary shall publish on a publicly available website of the Department the terms and recipient of the assistance so awarded.

The term covered nation has the meaning given that term in section 4872 of title 10, United States Code.

The term rare earth component means samarium, cobalt, neodymium, iron, and boron, to the extent such materials are intended for use in the creation of a rare earth magnet.

The term rare earth magnet means samarium-cobalt magnets and neodymium-iron-boron magnets.