Published by the Independent
Alameda County — Rep. Eric Swalwell (D-CA) held a press conference in Livermore on Tuesday, Aug. 10, to discuss his bill to create a tax credit for domestic production of rare earth magnets (REM).
During the event hosted at GILLIG, a manufacturer of zero-emission transit buses, Swalwell said that the Rare Earth Magnet Manufacturing Production Tax Credit Act would create a production tax credit for rare earth magnets manufactured in the U.S.
Swalwell noted that the announcement of his bill coincided with the passage of the bipartisan infrastructure plan in Washington, D.C. Currently, there is no domestic production of rare earth magnets, even though 93% of all electric vehicles use them in their powertrains. With this new bill, Swalwell hopes to help secure a domestic supply chain and stimulate production of electric vehicles as part of a national initiative to strengthen the economy and combat climate change. At this time, China is the leading manufacturer of REM, and
Swalwell aims to reduce America’s reliance on the Chinese government for this product.
“Even when we derive and harvest in America, often the processing and magnetizing takes place in China,” he said. “That makes us beholden to a country whose government lies, cheats and steals … they have been cited by the World Trade Organization for their corrupt practices when it comes to rare earth elements.”
Swalwell noted that the United States has mines in Alaska, California and Texas where production will be stimulated by this tax credit. The credit will give $20 for each kilogram of domestically processed REM; $30 for each kilogram that is both harvested and processed in the U.S.
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