September 15, 2022
ROSSLYN, VA–Today, the National Electrical Manufacturers Association (NEMA) asked Sen. Maria Cantwell, as Chair of the Senate Commerce, Science, and Transportation Committee, to urge President Biden to publicly release the Department of Commerce’s report on its investigation on imports of Neodymium-Iron-Boron permanent magnets.
NEMA’s letter highlighted the critical role that neodymium magnets play for the U.S. electroindustry and called for additional clarity around the potential for Section 232 national security tariffs on this vital feedstock for domestic manufacturing. NEMA asserted that “The Department’s investigation and the specter of tariffs is causing uncertainty surrounding future cost and availability of imports of this critical material just as the industry gears up to support implementation of the Bipartisan Infrastructure Law.”
The U.S. currently lacks sufficient domestic mining and manufacturing to meet the vast need for these magnets, which are important components of a wide range of electronic devices. Neodymium magnets play a crucial role in clean energy technologies, medical imaging, heating and cooling, consumer electronics and more and will be vital to meeting U.S. climate goals, curbing inflation and fostering a domestic supply chain.
“NEMA supports the domestic neodymium magnet industry, and efforts to build capacity for domestic sourcing, however, the U.S. does not currently have the processing capacity needed to support the demand for this product. Until a viable U.S. industry emerges and/or other sources of neodymium magnets are made available, tariffs on this good will cause further inflationary pressures and will increase stress on already strained supply chains supporting the U.S. electroindustry.”
A link to the full letter can be found here.