A new bipartisan bill on rare earth production has been introduced by US lawmakers. The bill is aimed at reducing the country's dependence on China for the production of rare earths, minerals used military and in high-tech. To reach the goal the bill aims to create new tax incentives for companies operating in the extraction, recovery and recycling of minerals and critical metals from deposits in the USA.
Rare earths represent a resource of great importance for the US economy and in the context of the trade war between China and the United States, the possibility that China would block or reduce the export of rare earths was a major concern. Therefore, last year President Donald Trump ordered the Defense Department to stimulate rare earth production.
The new legislation would allow a reduction in the cost of capital for the US rare earth sector, making it more competitive with Chinese rare earth producers who already enjoy lower capital costs.