H.R. 7563 — Rare Earth Magnet Market Revitalization Act

This section states congressional findings that price and market manipulation by the People's Republic of China has reduced private investment in rare earth magnet processing, refining, and production in the United States and partner countries, creating supply chain vulnerabilities for commercial and military products reliant on such magnets. It expresses the sense of Congress that the Secretary of Commerce should be empowered to ensure U.S.-based manufacturers acquire rare earth magnets from U.S. or partner sources to the extent available.

This section prohibits the importation into the U.S. customs territory, after one year from enactment, of (1) rare earth components or rare earth magnets originating from covered nations, or (2) articles incorporating rare earth magnets originating from covered nations. The Secretary of Commerce may waive the prohibition on a case-by-case basis for (1) nonavailability, upon importer certification that such articles cannot practicably be sourced or assembled without covered-nation rare earth magnets (with the Secretary able to override if alternatives exist); or (2) national interest. The Secretary must publish on a Department of Commerce website (1) a list of importers receiving waivers, including amounts and types of rare earth magnets imported, and (2) an annual aggregate report on waivers granted in the prior year.

This section authorizes the Secretary of Commerce to promulgate regulations prohibiting the exportation of high-value electronic waste containing rare earth magnets to the extent the Secretary determines such waste could be recycled or repurposed in the United States to extract the magnets for use in new products.

This section authorizes the Secretary of Commerce, subject to appropriations, to provide federal financial assistance in the form of offtake agreements or price guarantees to nongovernmental entities determined to have invested in facilities and equipment for manufacturing, production, processing, or recycling rare earth components or rare earth magnets in countries that are not covered nations. Not later than 30 days after making any such award, the Secretary must publish the terms and recipient on a publicly available Department of Commerce website.

This section directs the Secretary of Commerce, not later than three years after enactment, to submit to the House Committee on Energy and Commerce and the Senate Committee on Commerce, Science, and Transportation a report on (1) the manner and extent to which the Act's limitations have been implemented, (2) the Secretary's assessment of their success in developing a secure supply of rare earth magnets, and (3) recommendations for expanding such limitations to all critical minerals.

This section defines, for purposes of the Act, (1) "covered nation" as having the meaning given that term in 10 U.S.C. §4872 (i.e., a prohibition on Department of Defense procurement of certain covered materials melted or produced in such nations); (2) "rare earth component" as samarium, cobalt, neodymium, iron, and boron, to the extent intended for use in creating a rare earth magnet; and (3) "rare earth magnet" as samarium-cobalt magnets and neodymium-iron-boron magnets.