New Bill Would Boost U.S. Production of Permanent Magnets

June 17, 2026


New legislation introduced by a bipartisan duo aims to increase production of permanent magnets in the U.S. to break China’s stranglehold on the supply of these critical components (China Select Committee).

The bill: The Magnets Value Chain Support Act of 2026, introduced by Chairman John Moolenaar of the Select Committee on China (R-MI) and Ranking Member Ro Khanna (D-CA), tackles everything from the production of rare earth oxide to the domestic production of magnets to the technologies that use them.

  • Permanent magnets are essential inputs in motors, generators, wind turbines, industrial robots and guided munitions and many other technologies that the U.S. depends on for economic growth and national security.
  • China has long cornered the market on critical minerals, often restricting exports and disrupting global supply chains.

Going rare-earth free: The bill also contains a crucial provision supporting innovation in magnet production—it recognizes iron nitride magnets as equally important as rare earth magnets for the U.S. economy.

  • Leading producer of iron nitride magnets Niron Magnetics applauded the move, noting that it will help accelerate manufacturing growth and competitiveness.
  • “Congress is sending a clear signal to innovators, manufacturers, and investors that the U.S. is committed to building resilient supply chains and backing breakthrough technologies that reduce foreign material dependencies,” said Niron CEO Jonathan Rowntree. 

NAM at work: The NAM has led advocacy efforts for policies that secure access to critical minerals and diversify supply chains away from China.

  • Earlier this year, the NAM released a comprehensive agenda for critical minerals policy, including a two-pronged policy framework that calls for coupling domestic action on permitting reform and strengthening financial resources with efforts to promote international partnerships that will rebalance global supply chains.
  • The NAM has also championed the DOMINANCE Act, a measure aimed at expanding U.S. access to critical minerals. As NAM President and CEO Jay Timmons said, “China’s dominance of critical mineral supply chains poses a growing threat to America’s manufacturing competitiveness, economic security and technological leadership—at a time when manufacturers need reliable access to these materials more than ever.”