Permanent magnet traceability pilot program

(a) In general Not later than September 30, 2026, the Secretary of Defense shall establish a pilot program under which the Department of Defense shall validate the sources of rare earth elements and critical materials used in permanent magnets used by the Department, including sources of recycled rare earth elements and critical materials used in such permanent magnets, to ensure the accuracy of the information reported by contractors providing such permanent magnets to the Department and the integrity of the supply chains for such permanent magnets against foreign adversaries. (b) Sunset The pilot program established under subsection (a) shall terminate on September 30, 2029. (c) Report Not later than 180 days after September 30, 2029, the Secretary of Defense shall submit to Congress a report on the results of the pilot program required under subsection (a), including the recommendations of the Secretary whether the pilot program should be continued or expanded. (d) Critical material defined In this section, the term critical material means a material, other than a rare earth element, used in permanent magnets used by the Department of Defense that the Secretary of Defense identifies as necessary to meet the requirements of the Department.