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Monday, 08/30/2021 9:42:46 PM

Monday, August 30, 2021 9:42:46 PM

Post# of 2144

August 30, 2021
The Honorable Nancy Pelosi The Honorable Richard Neal
Speaker, U.S. House of Representatives Chairman, Committee on Ways and Means
1236 Longworth Building 1102 Longworth Building
Washington, DC 20515 Washington, DC 20515
The Honorable Kevin McCarthy The Honorable Kevin Brady
Minority Leader, U.S. House of Ranking Member, Committee on Ways and Means
Representatives 1139 Longworth Building
2468 Rayburn Building Washington, DC 20515
Washington, DC 20515
Dear Speaker Pelosi, Minority Leader McCarthy, Chairman Neal, and Ranking Member Brady:
On behalf of the undersigned organizations, which represent a majority of America’s reemerging rare
earth (RE) industry, we urge you to include in upcoming infrastructure legislation the production tax
credit for RE magnets proposed in H.R. 5033. This tax credit is a critical action the Congress can
take to secure the domestic supply chain from foreign influence and will set the stage for a vibrant,
commercially competitive RE industry able to compete on a global scale.
On August 10, Representatives Swalwell (CA-15) and Reschenthaler (PA-14) introduced the
bipartisan Rare Earth Magnet Manufacturing Production Tax Credit Act (H.R. 5033) to provide
U.S. suppliers with tax incentives for domestically producing RE magnets. RE magnets are critical to
U.S. national security systems and essential civilian products, including electronics, automobiles,
aerospace equipment, pumps, medical devices, and emerging clean technologies.
The bill offers tax credits for the domestic manufacturing of RE magnets using domestic materials.
Currently, there is limited capacity to produce RE magnets at scale in America, with China supplying
90% of the world’s needs. As noted in an interagency assessment pursuant to Executive Order
14017, “...unfair foreign subsidies and other trade practices have adversely impacted U.S.
manufacturing, and more broadly, U.S. competitiveness.” As such, the U.S. is vulnerable to actions
from foreign governments to weaponize non-market subsidies, loose environmental regulations, and
substandard labor practices to further consolidate control.
This legislation would address market imbalances and help prevent non-market action from
disrupting a resurgent RE industry in America. Moreover, this legislation would empower our industry
to obtain necessary investments from the private sector and accelerate production.
This inflection point could define whether America truly establishes a vibrant domestic RE supply
chain. We deeply appreciate interagency efforts, led by the Department of Defense and the
Department of Energy, to establish domestic RE production capable of meeting U.S. national
security and commercial needs. With this support, our industry has made significant investments to
strengthen and expand domestic RE production. While laudable, this is just the first step. To build a
resilient American supply chain that is globally competitive, we must pursue a whole of government
approach, including tax incentives.
For decades, U.S. policymakers, our industry, and our customers have longed for a domestic supply
chain free from foreign reliance that upholds American values and standards. The consequences of
inaction are stark; China could continue to escalate its aggressive tactics to eliminate progress made
by our burgeoning industry.
Now, more than ever, is the moment to address these challenges by enacting this transformative
legislation. Active legislative efforts currently underway provide a key opportunity for Congress to
bolster support for investments already made in RE infrastructure in America. We respectfully urge
the House to include a tax credit in forthcoming infrastructure legislation as a crucial next step in
securing a domestic RE supply chain.
We thank you for your consideration and stand ready to assist.
Advanced Magnet Lab, Inc.
Bunting Magnetics
Dexter Magnetic Technologies
Electron Energy Corporation
Energy Fuels Inc
Innovation Metals Corp.
Materion Corp.
National Mining Association
MP Materials
NioCorp Development Ltd.
Quadrant Magnetics
Rare Element Resources Ltd.
Texas Mineral Resources Corp.
Ucore Rare Metals Inc.
Urban Mining Company
US Magnetic Materials Association
USA Rare Earth

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