HR7563-119

What This Bill Does

This bill responds to rare earth magnet supply-chain vulnerability tied to the People's Republic of China. One year after enactment, the President acting through Commerce must prevent imports of rare earth components, rare earth magnets, and articles incorporating rare earth magnets that originate from covered nations unless a case-by-case waiver applies. Importers can certify that magnets or components cannot practicably be sourced elsewhere, or that articles cannot practicably be assembled without covered-nation magnets, but Commerce can deny a waiver if alternatives exist and must publish waiver recipients, amounts, types, and annual aggregate reports. Commerce may regulate exports of high-value electronic waste containing rare earth magnets when the waste could be recycled or repurposed in the United States. Subject to appropriations, Commerce may provide federal financial assistance through offtake agreements or price guarantees to non-governmental entities investing in manufacturing, production, processing, or recycling facilities outside covered nations, with award terms and recipients published within 30 days. Commerce must report within three years on implementation, secure supply development, and whether to expand limitations to all critical minerals.

Who Benefits and How

U.S. rare earth magnet manufacturers, partner-country suppliers, domestic recyclers, defense supply chains, and critical-minerals policymakers benefit from import limits, waiver transparency, e-waste retention authority, and price-support tools.

Who Bears the Burden and How

Importers of covered-nation magnets, PRC rare earth exporters, electronic waste exporters, Commerce Department trade officials, and U.S. manufacturers using magnet-containing articles must comply with sourcing limits, certifications, waiver review, export rules, and public reporting.

Key Provisions

• Restricts imports of rare earth components, rare earth magnets, and magnet-containing articles from covered nations after a one-year transition.
• Requires Commerce to manage case-by-case waivers and publish waiver recipients, quantities, magnet types, and annual aggregate reports.
• Authorizes Commerce regulations limiting exports of high-value electronic waste that could be recycled domestically for rare earth magnets.
• Authorizes offtake agreements and price guarantees for non-covered-nation rare earth magnet facilities.
• Requires a three-year Commerce report on implementation, supply security, and possible expansion to all critical minerals.