Rubio, Hyde-Smith Introduce Bill to Kickstart American Rare Earth Manufacturing

Press Release

U.S. Senators Marco Rubio (R-FL) and Cindy Hyde-Smith (R-MS) introduced the Obtaining National and Secure Homeland Operations for Rare Earth (ONSHORE) Manufacturing Act. The legislation would incentivize the development of rare earth metallurgy manufacturing facilities in the United States by creating a financial investment program within the U.S. Department of Energy (DOE). Congressman Tony Gonzales (R-TX) led companion legislation in the House of Representatives.

"The United States is dangerously dependent on China's rare-earth manufacturing industry," Rubio said. "Rare earths are used in everything from batteries to advanced weapons systems. Relying on a hostile regime in Beijing for these critical products poses a serious national and economic security problem. We need to take immediate action to onshore these operations."

"The United States must rebuild its rare earth capacity or face worse economic and national security risks," Hyde-Smith said. "China's growing confrontational stance toward the United States, combined with the disruptions to our economy from Putin's invasion of Ukraine, should serve as a stark wakeup call. The ONSHORE Manufacturing Act would help set a foundation for proactively doing what we must to protect our nation and its long-term interests."

"In no way should the United States be reliant on China or other adversaries for products we can produce domestically," Gonzales said. "We have the capabilities in my district specifically to develop rare earth elements and products. It's unacceptable that we are relying on China for an industry that can be developed in our own backyard."

The ONSHORE Manufacturing Act:
Establishes a financial investment program within the U.S. Department of Energy to provide funding assistance to private entities specifically for the purpose of developing rare earth metallurgical/manufacturing facilities, where final products are produced.
Establishes a multilateral investment fund for the Secretary of State to coordinate with U.S. allies to establish secure international rare earth supply chains.
Directs the U.S. Department of Labor (DOL) to establish a workforce development initiative to facilitate workforce training programs and apprenticeships relating to all steps of the rare earth production process.
Directs the President to submit a plan of action, in coordination with relevant federal agency heads and industry stakeholders, for enhancing domestic product production and the development of technologies through the Defense Production Act.
Prohibits "foreign entities of concern" from receiving funds under the program, including entities owned, controlled, or influenced by the DPRK, PRC, Russia, or Iran, as well as entities considered to be engaged in conduct that is harmful to the national security or foreign policy of the U.S.
Includes a provision to allow DOE to clawback funds from a recipient if they conduct joint research or share intellectual property with a foreign entity of concern.