House Bill would give tax credits for rare earth magnets
The Rare Earth Magnet Manufacturing Production Tax Credit Act, a bill that would extend tax credits to companies that domestically produce rare earth magnets was introduced to the U.S. House of Representatives on Aug. 11.
The bill is the latest in a string of U.S. legislation attempting to cobble together a national strategy to produce more lithium, rare earths and other strategic minerals used to make electric vehicles (EVs), weaponry and electronics.
Rep. Eric Swalwell, (CA-D), introduced the bill that was co-sponsored by Rep. Guy Reschenthaler (PA-R).
Reuters reported that the bill sets up a $20/kg credit for neodymium iron boron magnets made in the United States, with the credit growing to $30/kg for magnets made with rare earths sourced from American mines.
MP Materials Corp’s Mountain Pass mine in California is the only U.S. rare earths mine, but that facility relies on Chinese processors
“As the Biden administration makes a strong commitment to vehicle electrification, it’s more important than ever that the United States secures all of the necessary components of the supply chain,” said Swalwell.
Swalwell and Reschenthaler had previously launched a bipartisan caucus to focus on ways to increase domestic rare earths production.
There are no facilities in the United States to produce rare earths magnets.
China is the world’s largest producer of these minerals and magnets, and has threatened to stop their export to the United States.
The credit would be a boost to MP, which has said it aims to produce magnets at some point in the country, as well as privately held USA Rare Earth and other domestic projects.