(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Under Secretary of Defense for Acquisition and 
Sustainment, in consultation with the Under Sec-
retary of Defense (Comptroller), the Vice Chairman 
of the Joint Chiefs of Staff, and the appropriate 
Under Secretary of State designated by the Sec-
retary of State shall establish guidance to— 
(A) enable the acquisition of items con-
taining rare earth materials; and 
(B) establish a secure supply chain for 
rare earth materials from sources within the 
United States and covered foreign sources. 
(2) CONTENTS.—The guidance required by 
paragraph (1) shall encourage the use of rare earth 
materials mined, refined, processed, melted, or sin-
tered in the United States and include— 
(A) a determination of when best value 
contracting methods should be used to ensure 
the viability of a rare earth material supplier; 
(B) a guide to the applicability of relevant 
statutes, including sections 2533b and 2533c of 
title 10, United States Code, and other statu-
tory or regulatory restrictions to defense con-
tracts and subcontracts; 
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(C) information on current sources within 
the United States and covered foreign sources 
of rare earth materials along with commonly 
used commercial documentation and review 
processes; 
(D) directives on budgeting and expending 
funds for the qualification and certification of 
suppliers of rare earth materials within the 
United States to meet national security needs; 
and 
(E) any exceptions to the Joint Capabili-
ties Integration and Development System Man-
ual and Department of Defense Directive 
5000.01. 
(3) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition and Sustain-
ment, in consultation with the appropriate Under 
Secretary of State designated by the Secretary of 
State, shall submit to the congressional defense com-
mittees, the Committee on Foreign Affairs of the 
House of Representatives, and the Committee on 
Foreign Relations of the Senate a report on— 
(A) the guidance required by paragraph 
(1); and 
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(B) the efforts of the Secretary of Defense 
to create and maintain secure supply chain for 
rare earth materials from sources within the 
United States and covered foreign sources. 
(4) DEFINITIONS.—In this subsection: 
(A) COVERED
FOREIGN
SOURCE.—The 
term ‘‘covered foreign source’’ means a source 
located in a foreign country that is not an ad-
versary of the United States, as determined by 
the Secretary of Defense. 
(B) RARE
EARTH
MATERIAL.—The term 
‘‘rare earth material’’ means a concentrate, 
oxide, carbonate, fluoride, metal, alloy, magnet, 
or finished product whose chemical, magnetic, 
or nuclear properties are largely defined by the 
presence of— 
(i) yttrium; 
(ii) scandium; or 
(iii) any lanthanide series element. 
(b) AUTHORITY TO DISPOSE OF AND ACQUIRE MA-
TERIALS FOR THE NATIONAL DEFENSE STOCKPILE.— 
(1) DISPOSAL AUTHORITY.—Pursuant to sec-
tion 5(b) of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98d(b)), the National 
Defense 
Stockpile 
Manager 
shall 
dispose 
of 
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3,000,000 pounds of tungsten ores and concentrates 
contained in the National Defense Stockpile (in ad-
dition to any amount previously authorized for dis-
posal). 
(2) ACQUISITION AUTHORITY.— 
(A) AUTHORITY.—Using funds available in 
the National Defense Stockpile Transaction 
Fund, the National Defense Stockpile Manager 
may acquire the following materials determined 
to be strategic and critical materials required to 
meet the defense, industrial, and essential civil-
ian needs of the United States: 
(i) Aerospace-grade rayon. 
(ii) Electrolytic manganese metal. 
(iii) Pitch-based carbon fiber. 
(iv) Rare earth cerium compounds. 
(v) Rare earth lanthanum compounds. 
(B) AMOUNT
OF
AUTHORITY.—The Na-
tional Defense Stockpile Manager may use up 
to $37,420,000 in the National Defense Stock-
pile Transaction Fund for acquisition of the 
materials specified in subsection (b). 
(C) FISCAL YEAR LIMITATION.—The au-
thority under subsection (b) is available for pur-
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chases during fiscal year 2020 through fiscal 
year 2024. 
(c) NATIONAL DEFENSE STOCKPILE SALES.— 
(1) SENSE OF CONGRESS.—It is the sense of 
Congress that tantalum should be designated as a 
strategic and critical material under the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 
98 et seq.) required to meet the defense, industrial, 
and essential civilian needs of the United States. 
(2) NATIONAL DEFENSE STOCKPILE SALES OF 
TANTALUM.—Section 2533c(d)(1) of title 10, United 
States code, is amended— 
(A) in subparagraph (C), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) adding at the end the following new 
subparagraph: 
‘‘(E) tantalum.’’. 
(3) PROHIBITION ON SALES OF MATERIALS.— 
Section 2533c(a)(2) of title 10, United States Code, 
is amended by striking ‘‘covered’’ before ‘‘material’’. 
Æ 
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