USA Rare Earth praised the introduction in the House of a bipartisan bill that would boost production of rare earth permanent magnets.
The new legislation would incentivize the domestic production of neodymium boron (NdFeB) rare earth permanent magnets that are used in electric vehicles, renewable energy, and the defense industrial base.
“USA Rare Earth applauds the introduction of the Rare Earth Magnet Manufacturing Production Tax Credit Act and efforts by Congress to restore this critical U.S. production capability. These incentives would be a boost to U.S. manufacturers and would help establish a beachhead for NdFeB magnet production in the U.S. The legislation also reflects the urgent demand by automakers for the rare earth magnets necessary to transition to zero-emission vehicles by 2030, and it underscores the importance of the parallel requirements for the U.S. defense industrial base,” said Pini Althaus, CEO of USA Rare Earth.
USA Rare Earth, LLC owns 80 percent of the Round Top Heavy Rare Earth, Lithium, and Critical Minerals Project in Hudspeth County in west Texas. Round Top hosts critical heavy rare earth metals including lithium, zirconium, hafnium, and beryllium.
U.S. Reps. Eric Swalwell (D-CA) and Guy Reschenthaler (R-PA) authored the bill. They are co-chairs of the Congressional Critical Materials Caucus.
“This bill would spur domestic manufacturing and reward innovation, and it would help re-shore a vital U.S. supply chain with potential for international collaboration. Led by the chairs of the Congressional Critical Materials Caucus, the bill dovetails with the whole-of-government approach under way to swiftly secure U.S. supply chains and to restore NdFeB magnet manufacturing in the United States,” Althaus said.
Once operational, USA Rare Earth’s NdFeB magnet plant will produce at least 2,000 tons each year of rare earth magnets, accounting for about 17% of the (2019) U.S. permanent magnet demand.
The U.S. lacks a commercial-scale capability to process rare earth permanent magnets used in the automotive, aerospace, defense and electronics industries. At present, no other NdFeB permanent magnet manufacturing plant is operational in the United States.
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