Senator Catherine Cortez Masto is championing domestic production of rare earth magnets for green energy transition with the “Rare Earth Magnet Production Tax Credit Act.”
Rare earth magnets are composed of 17 chemical elements, and their unique properties make them vital for applications such as laptop hard drives, electric motors, wind turbines, and green technology. While these elements are not genuinely rare in the crust of Earth, their processing makes them “rare” due to low concentrations and complex extraction processes.
The proposed act aims to provide a $20 per kilogram production tax credit for rare earth magnets manufactured in the states. The incentive would encourage domestic mining and processing of rare earth elements, reducing dependence on foreign sources.
Simon Jowitt, an associate professor of economic geology at the University of Nevada, Reno, emphasizes the importance of domestically mining and processing rare earth elements, saying the U.S. must secure its supply of these critical elements and reduce reliance on China for components essential for defense systems and clean-energy technologies.
“The one advantage of mining these things in the U.S. is we have strict environmental regulations,” Jowitt said. “Mining companies are increasingly aware of the social impact they have and they think of how to bring benefits to local communities rather than leaving a problematic hole in the ground.”
China currently dominates global rare earth element production, accounting for 70 percent, while the U.S. produces only 14 percent.
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