Swalwell Leads Letter to Leadership Pushing New Manufacturing Incentives as Part of Reconciliation Legislation
WASHINGTON, DC – Representative Eric Swalwell (CA-15), co-founder and co-chair of the Critical Materials Caucus, today led a letter with Representatives Steven Horsford (NV-04), Vincente Gonzalez (TX-15), and Henry Cuellar (TX-28) to Speaker Pelosi and Ways and Means Committee Chair Richard Neal (MA-01) urging the inclusion of H.R. 5033, the Rare Earth Magnet Manufacturing Production Tax Credit Act in the upcoming reconciliation package now being negotiated.
Earlier this month, Rep. Swalwell introduced the bipartisan Rare Earth Magnet Manufacturing Production Tax Credit Act, which would create a production tax credit for rare earth magnets that are manufactured in the United States.
“As Congress advances legislation this Fall through budget reconciliation to make historic investments in U.S. infrastructure and competitiveness, we respectfully urge the inclusion of new manufacturing tax incentives to establish a domestic supply chain for the critical materials essential to the automotive and renewable energy industries,” the Members wrote.
Currently, the U.S. lacks a commercial-scale capability to manufacture rare earth permanent magnets that are widely used in electric vehicles, wind turbines, and other advanced technologies. According to a recent White House supply chain report, the U.S. has lost at least four rare earth magnet production facilities since 1992, and rare earth elements produced in the United States are sent to China for separation and processing. Fortunately, American companies are actively developing promising new methods to support a U.S.-based supply chain for rare earth permanent magnets.
Rare earth magnets are used in 93 percent of electric vehicles, but because there is no domestic production of rare earth magnets, all rare earth elements produced in the United States are sent to China for separation and processing. Including the Rare Earth Magnet Manufacturing Production Tax Credit Act in the reconciliation package would restore a U.S. supply chain for rare earth magnets and help meet the Biden administration’s goal of replacing thousands of transit vehicles, including buses, with clean, zero emission vehicles.
A link to the letter can be found here.