Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.) and Markwayne Mullin (R-Okla.) introduced legislation to strengthen the domestic supply chain for rare-earth magnets, which are critical components of cell phones, computers, defense systems, and electric 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 mine 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. Last year, the Department of Commerce released a report warning that overreliance on China threatened U.S. national security and recommended passage of Cortez Masto’s bill. Her 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.
“We can’t keep relying on China for components we need to power our defense systems and drive our clean-energy economy,” said Senator Cortez Masto. “Over 600 Nevadans already work in the rare-earth mining industry, and my commonsense legislation will help build a domestic supply chain for the recycling and manufacturing of rare-earth magnets, protecting our national security and creating thousands more jobs right here in the U.S.”
“There is no reason for the United States to remain largely dependent on China for rare-earth minerals we have under our feet,” said Senator Mullin. “American energy independence brings global stabilization, and that starts with strengthening the domestic supply chain. Thank you to Senator Cortez Masto for joining me on this legislation.”
“Mining and processing rare earths domestically is important, but that alone still leaves our supply chain vulnerable. American industry must convert these essential materials into the permanent magnets that are utilized in components across our economy, including for national security applications,” said James Litinsky, Chairman and CEO of MP Materials. “This bipartisan legislation is a crucial step towards leveling the competitive playing field. It will catalyze private investment to address the very critical gap in our supply chain that previous policies have overlooked.”
The Rare Earth Magnet Production Tax Credit Act would provide a $20 per kilogram production tax credit for 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 the 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. Senator Cortez Masto introduced bipartisan legislation to protect critical mineral production in response to the misguided Rosemont decision, which is threatening mining projects in Nevada and across the West.
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