(B) develop uses and markets for thorium, 
including energy, by coordinating and struc-
turing domestic and international investment 
partnerships for the development of commercial 
and industrial uses for thorium. 
(e) AUDITS.— 
(1) IN GENERAL.—The Corporation shall retain 
an independent auditor to evaluate the extent to 
which Federal funds, if any, made available to the 
Corporation for research and development activities 
have been expended in a manner that is consistent 
with the purposes of this Act and the charter, by-
laws, and rules of governance of the Corporation. 
(2) REPORTS.—The auditor retained under 
paragraph (1) shall submit to the Secretary of De-
fense, the Corporation, and the Comptroller General 
of the United States an annual report containing the 
findings and determinations of the auditor. 
(3) REVIEW BY COMPTROLLER GENERAL.—The 
Comptroller General of the United States shall— 
(A) review each annual report submitted to 
the Comptroller General by the auditor under 
paragraph (2); and 
(B) submit to the Committee on Armed 
Services of the Senate and the Committee on 
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Armed Services of the House of Representatives 
a report containing the comments of the Comp-
troller General on the accuracy and complete-
ness of the report and any other matters relat-
ing to the report that the Comptroller General 
considers appropriate. 
(f) REIMBURSEMENT OF FEDERAL GOVERNMENT.— 
Not later than seven years after the date of the enactment 
of this Act, the Corporation shall reimburse the Federal 
Government for the administrative costs associated with 
the establishment of its charter. 
SEC. 6. DUTIES OF SECRETARY OF DEFENSE. 
(a) ADVANCEMENT OF RARE-EARTH INITIATIVES.— 
The Secretary shall coordinate with other Federal agencies 
to advance and protect— 
(1) domestic rare-earth mining; 
(2) the refining of rare-earth elements; 
(3) basic rare-earth metals production; and 
(4) the development and commercialization of 
thorium, including— 
(A) energy technologies and products; and 
(B) products containing thorium. 
(b) ANNUAL REPORTS.—Not later than one year 
after the date of the enactment of this Act, and annually 
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thereafter, the Secretary shall submit to Congress a report 
that, for the period covered by the report— 
(1) contains a description of the progress in the 
development of— 
(A) a domestic rare-earth refining capac-
ity; and 
(B) commercial uses and energy-related 
uses for thorium; and 
(2) takes into account each report submitted to 
the Secretary by the Cooperative and the Corpora-
tion. 
(c) 
FEDERAL
AGENCIES; 
NATIONAL
LABORA-
TORIES.—Each Federal agency (including the Nuclear 
Regulatory Commission and the Defense Advanced Re-
search Projects Agency), each national laboratory, and 
each facility funded by the Federal Government shall pro-
vide assistance to the Cooperative and the Corporation 
under this Act. 
(d) INSTITUTIONS OF HIGHER EDUCATION.—Each 
institution of higher education is encouraged— 
(1) to develop training and national expertise in 
the field of thorium development; and 
(2) to promote— 
(A) the marketing of thorium; 
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(B) the advancement of the strategic uses 
of thorium; and 
(C) salt chemistry science and radio chem-
ists. 
SEC. 7. AMENDMENT TO 10 U.S.C. 2533b, REQUIRING ONLY 
U.S. OR NATO MEMBER NATION RARE EARTH 
MATERIALS IN U.S. WEAPON SYSTEMS. 
(a) 10 U.S.C. 2533b(a) REQUIREMENT.—Shall be 
amended to add the following provision: ‘‘(3) Beginning 
January 1, 2020, all purchased or procured weapon sys-
tems must contain only U.S. or NATO member nation 
produced and sourced rare earth materials, metals, 
magnets, parts, and/or components. The inclusion of any 
rare earth materials that originate or pass through a non- 
NATO member nation is prohibited. No waivers shall be 
granted unless the lead contractor seeking a waiver can 
demonstrate that it has pursued all possible corrective ac-
tions, including direct investment into the supply chain.’’. 
Æ 
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