Congressional findings

Congress finds the following: (1) The United States is strategically dependent on foreign sources—principally the People’s Republic of China—for magnet metals and permanent magnets used in electric motors, generators, robotics, industrial machinery, advanced electronics, and national defense systems. (2) In 2025, a Select Committee on China investigation found that the PRC government engaged in a decades‐long strategy to dominate the rare earth supply chain. (3) Domestic metallization and magnet-manufacturing capabilities have atrophied and require targeted, market-oriented incentives to restore competitive production and reduce foreign dependence. (4) Motors, generators, robotics, and high-performance electronics constitute the majority of global permanent magnet demand and are essential to the economic and national security of the United States. (5) Reshoring the magnet supply chain requires both upstream incentives for magnet metal and permanent magnet production, and downstream incentives for the adoption of such materials by industrial, energy, automotive, aerospace, and electronics manufacturers. (6) Competitive market incentives are necessary to counter non-market foreign production and to strengthen the domestic industrial base.