New Rare Earth Export Controls May Aid US Producers, Commerce Says
The U.S. should consider new export controls on items used in rare earth magnet production, which could aid domestic rare earth producers, the Commerce Department said in a report this week. The report, part of a Section 232 investigation into the effects of neodymium-iron-boron (NdFeB) permanent magnets on national security, said export controls could dissuade U.S. suppliers from shipping rare earths out of the U.S. The administration should “evaluate the use of export controls for domestic producers who face difficulties acquiring feedstocks from domestic sources due to competition with foreign consumers.”
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Export restrictions should be considered under the International Emergency Economic Powers Act, which would “address market distortions in the NdFeB magnet value chain that create substantial difficulties acquiring or face inflated prices for feedstocks from domestic sources due to competition with foreign consumers,” the report said. “The economic implications of export controls on the value chain should be analyzed to determine their efficacy while considering their impact on U.S. allies.”