Rare Earth Magnet Market Revitalization Act

Bill Number

H.R. 7563

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-03-05T03:23:24Z

AI-Generated Summary

Purpose

The Rare Earth Magnet Market Revitalization Act aims to reduce U.S. reliance on rare earth magnets from adversarial nations by prohibiting their importation, restricting exports of recyclable electronic waste containing these magnets, and supporting domestic or allied production. It addresses supply chain vulnerabilities in commercial and military products caused by market manipulation, primarily by China, to encourage investment in U.S. and partner-country manufacturing.

Key Provisions

• Import Restrictions (Section 3): Prohibits importing rare earth components (materials like samarium, cobalt, neodymium, iron, and boron used to make magnets) or rare earth magnets (samarium-cobalt or neodymium-iron-boron types) originating from "covered nations" (defined as adversarial countries like China under U.S. law). This applies to finished products incorporating such magnets. The ban takes effect one year after enactment.
• Exceptions: Waivers available on a case-by-case basis if materials cannot be sourced elsewhere (nonavailability), or if it's in the national interest. The Secretary of Commerce can override nonavailability claims if alternatives exist. All waivers must be publicly listed online, with annual aggregate reports.
• Export Controls on Electronic Waste (Section 4): Authorizes the Secretary of Commerce to issue regulations banning exports of high-value electronic waste containing rare earth magnets if it can be recycled domestically to recover the magnets for reuse.
• Financial Support for Production (Section 5): Allows the Secretary of Commerce to provide federal assistance, such as offtake agreements (guaranteed purchases) or price guarantees, to non-government entities investing in manufacturing, processing, or recycling facilities in non-covered nations. Awards must be publicly disclosed within 30 days.
• Reporting Requirement (Section 6): Within three years of enactment, the Secretary must report to Congress on implementation, success in securing supplies, and recommendations for expanding restrictions to other critical minerals (essential raw materials for technology and defense).
• Definitions (Section 7): Clarifies terms, including "covered nation" (adversarial states per U.S. defense law), "rare earth component," and "rare earth magnet."

Significant Changes to Existing Law

• Introduces new import bans and waiver processes specifically targeting rare earth magnets from covered nations, building on but expanding existing trade restrictions under U.S. customs and defense laws.
• Grants novel authority to the Commerce Department for export controls on recyclable e-waste and financial incentives like offtake agreements, which were not previously authorized for this sector.
• Mandates public transparency for waivers and assistance, enhancing accountability beyond standard trade enforcement.

Potential Impacts

• Government Agencies: Increases workload for the Department of Commerce in enforcing bans, processing waivers, issuing regulations, and providing financial support; requires coordination with Customs and Border Protection for imports.
• Citizens and Businesses: U.S. manufacturers may benefit from protected markets and incentives, potentially lowering long-term supply risks for industries like electronics, renewables, and defense. Importers and consumers could face higher short-term costs due to sourcing shifts, though exceptions mitigate disruptions.
• International Relations: Strains trade with covered nations (e.g., China), signaling a push for supply chain diversification; strengthens ties with allies through encouraged investments, but may invite retaliatory tariffs or disputes in global trade forums like the World Trade Organization.

Main Stakeholders Affected

• U.S. Manufacturers and Investors: Gain market protection and financial support for domestic or allied production of rare earth magnets.
• Importers and Exporters: Face new restrictions on sourcing from covered nations and exporting e-waste, with potential compliance costs.
• Defense and Tech Industries: Benefit from more secure supplies for products like electric vehicles, wind turbines, and military equipment.
• Covered Nations (e.g., China): Experience reduced U.S. market access for their rare earth exports.
• Environmental and Recycling Firms: Could see opportunities in domestic e-waste recovery but must navigate new export rules.
• U.S. Government (Commerce Department and Congress): Responsible for oversight, enforcement, and evaluation.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on presidential and Commerce Department authority under trade and national security laws (e.g., Section 232 of the Trade Expansion Act), but waivers provide flexibility to avoid overly broad restrictions. Public disclosure requirements promote transparency and could invite legal challenges from affected businesses.
• Constitutional: Aligns with Congress's commerce clause powers to regulate imports/exports, emphasizing national security without directly infringing on individual rights.
• Political: Reflects bipartisan concerns over economic dependence on adversaries, potentially advancing "friend-shoring" policies. The three-year report could lead to broader critical minerals legislation, influencing future U.S. industrial strategy amid global competition for resources.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Tokuda, Jill N. [D-HI-2]

Cosponsors (1)

Rep. Dunn, Neal P. [R-FL-2]

Recent Actions

• 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-12: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-12: Introduced in House
• 2026-02-12: Introduced in House

Bill Versions

• Rare Earth Magnet Market Revitalization Act — issued 2026-02-12 — PDF (6 pages)