Rare earth magnets are critical to many clean energy technologies from wind turbines to electric vehicles and much more. And, with the burgeoning clean tech market, the domestic and global demand for rare earth magnets is poised to grow rapidly in the coming years.
The bulk of supply chains for manufacturing rare earth magnets are overwhelmingly concentrated in China. Only one rare earth mine is up and running domestically, putting the United States in a vulnerable, import-reliant position. The need to reduce our reliance on China and other foreign adversaries for clean energy component supply chains cannot be understated; it’s imperative we grow a domestic supply chain, so American companies can compete on China’s unfair playing field.
Enter Rep. Guy Reschenthaler’s (R-Penn.) recently introduced, bipartisan H.R. 2849, the Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023. This bill would be an important step to onshoring our domestic rare earth magnet supply chains by rewarding companies that are manufacturing these magnets here at home.
“Expanding our clean energy potential while growing the U.S. economy and remaining a top global competitor requires the onshoring of rare earth mineral and magnet supply chains,” said Citizens for Responsible Energy Solutions (CRES) President Heather Reams. “CRES is proud to endorse Rep. Guy Reschenthaler’s (R-Penn.) legislation because it will help incentivize American mining and manufacturing of components critical for clean energy technologies.”
To learn more about how the United States can counter Chinese supply chain dominance, read CRES Forum’s white paper HERE.