Rare Earth Elements (REEs)The Effect of Imports of Neodymium Magnets on U.S. National Security

The Commerce Department’s Bureau of Industry and Security (BIS) has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C.§ 1862), to determine the effects on U.S. national security from imports of Neodymium-iron-boron (NdFeB) permanent magnets. The Department says that interested parties are invited to submit written comments, data, analyses, or other information to BIS by 12 November 2021. The Department notes that this is the first Section 232 investigation initiated under Secretary Raimondo, and is consistent with a recommendation by the White House’s 100-day supply chain reviews to evaluate whether to initiate this investigation.

Critical national security systems rely on NdFeB permanent magnets, including fighter aircraft and missile guidance systems. In addition, NdFeB permanent magnets are essential components of critical infrastructure, including electric vehicles and wind turbines. The magnets are also used in computer hard drives, audio equipment, and MRI devices.

If the Department finds that NdFeB permanent magnets are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the secretary shall advise the White House in her report on the findings of the investigation. By law, the Secretary of Commerce has 270 days from initiation, until 1 June 2022, to present the Department’s findings and recommendations to the White House.

Raimondo released the following statement: “The Department of Commerce is committed to securing our supply chains to protect our national security, economic security, and technological leadership. Consistent with President Biden’s directive to strengthen our supply chains and encourage investments to shore up our domestic production, the Department initiated a Section 232 investigation on imports of NdFeB permanent magnets to determine whether U.S. reliance on imports for this critical product is a threat to our national security.”