Mining Technology article today. US House lawmakers seek to reduce dependence on China for rare earths
US lawmakers have launched a bipartisan bill aimed at reducing the country’s reliance on China for rare earth elements, which are viewed as critical to the defence, telecommunications and renewable energy sectors.
Rare earth elements are used as critical components across several industries, ranging from electric vehicles to smartphones.
They are also vital for satellites, missile guidance systems, missile defence systems and more – fuelling concerns over China’s control over the materials.
The latest legislation was co-authored by Republican Lance Gooden and Democrat Vicente Gonzalez. It is similar to the legislation introduced in May this year by Republican Senator Ted Cruz, Bloomberg reported.
According to the news agency, the move would give tax incentives for mining companies as well as other firms involved in the reclaiming and recycling of critical minerals and metals from the US deposits.
USA Rare Earth CEO Pini Althaus was quoted by the news agency as stating: “The tax incentive seeks to level the playing field with regard to the subsidies China provides from mine to magnet.
“It would significantly improve the bottom line of any domestic rare earth project.”