(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, the Com-
mittee on Finance, and the Select Committee 
on Intelligence of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, the Committee 
on Ways and Means, and the Permanent Select 
Committee on Intelligence of the House of Rep-
resentatives. 
(2) PROCESSED OR REFINED.—The term ‘‘proc-
essed or refined’’ means any process by which raw 
rare earth metals are changed, mixed, or otherwise 
manipulated to render the metal usable for manufac-
turing everyday items, including computer chips or 
circuit boards. 
(3) RARE
EARTH
METALS.—The term ‘‘rare 
earth metals’’ means beryllium, cerium, cobalt, dys-
prosium, erbium, europium, gadolinium, graphite, 
holmium, lanthanum, lithium, lutetium, manganese, 
neodymium, praseodymium, promethium, samarium, 
scandium, tantalum, terbium, thulium, tungsten, yt-
terbium, and yttrium. 
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SEC. 3. ESTABLISHMENT OF STRATEGIC RARE EARTH 
METAL AND RARE EARTH METAL PRODUCTS 
RESERVE. 
(a) FINDINGS.—Congress finds that the storage of 
substantial quantities of rare earth metals and rare earth 
metal products will— 
(1) diminish the vulnerability of the United 
States to the effects of a severe supply chain inter-
ruption; and 
(2) provide limited protection from the short- 
term consequences of an interruption in supplies of 
rare earth metal products, particularly such prod-
ucts required for defense manufacturing and use. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to provide for the establishment of a stra-
tegic rare earth metals and rare earth metal products re-
serve. 
(c) REPORT REQUIRED.— 
(1) IN
GENERAL.—Not later than 270 days 
after the date of the enactment of this Act, the Sec-
retary of the Interior and the Secretary of Defense 
shall jointly submit the appropriate congressional 
committees a report describing— 
(A) the strategic requirements of the 
United States regarding stockpiles of rare earth 
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metals and processed and refined rare earth 
metal products; and 
(B) the requirements for such metals and 
products to support the United States for one 
year in the event of a supply disruption. 
(2) CONSIDERATIONS.—In developing the re-
port required by paragraph (1), the Secretary of the 
Interior and the Secretary of Defense shall take into 
consideration the needs of the Armed Forces of the 
United States, the defense industrial and technology 
sectors, and any places, organizations, physical in-
frastructure, or digital infrastructure designated as 
critical to the national security of the United States. 
(d) IMPLEMENTATION.—Not later than 3 years after 
submission of the report required by subsection (c), the 
Secretary of the Interior shall take such actions as are 
necessary to procure all types of rare earth metals and 
processed and refined rare earth metal products in appro-
priate quantities to support the strategic requirements de-
scribed in the report. 
(e) REASSESSMENT OF REQUIREMENTS.—The Sec-
retary of the Interior and the Secretary of Defense shall— 
(1) jointly reassess the strategic requirements 
described in paragraph (1) of subsection (c) and the 
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considerations described in paragraph (2) of that 
subsection; and 
(2) not less frequently than annually, submit to 
the appropriate congressional committees a report 
on— 
(A) that reassessment; and 
(B) describing any activities relating to the 
establishment or use of a strategic rare earth 
metals and rare earth metal products reserve 
during the preceding year. 
SEC. 4. DISCLOSURES CONCERNING RARE EARTH METALS 
BY CONTRACTORS OF DEPARTMENT OF DE-
FENSE. 
(a) REQUIREMENT.—The Secretary of Defense shall 
require that any contractor that provides to the Depart-
ment of Defense a system with a rare earth metal perma-
nent magnet disclose, along with delivery of the system, 
the provenance of the magnet. 
(b) ELEMENTS.—A disclosure under subsection (a) 
shall include an identification of the country or countries 
in which— 
(1) the rare earth metals used in the magnet 
were mined; 
(2) the rare earth metals were refined into ox-
ides; 
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(3) the rare earth metals were made into metals 
and alloys; and 
(4) the magnet was sintered or bonded and 
magnetized. 
(c) IMPLEMENTATION OF SUPPLY CHAIN TRACKING 
SYSTEM.—If a contractor cannot make the disclosure re-
quired by subsection (a) with respect to a magnet, the Sec-
retary shall require the contractor to establish and imple-
ment a supply chain tracking system in order to make the 
disclosure not later than 180 days after providing the 
magnet to the Department of Defense. 
(d) REPORT REQUIRED.—Not later than December 
31, 2022, and annually thereafter, the Secretary of De-
fense, after consultation with the Secretary of Commerce 
and the Secretary of the Interior, shall submit to the ap-
propriate congressional committees a report that in-
cludes— 
(1) a summary of the disclosures made under 
this section; 
(2) an assessment of the extent of reliance by 
the United States on foreign countries, and espe-
cially countries that are not allies of the United 
States, for rare earth metals; 
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(3) a determination with respect to which sys-
tems are of the greatest concern for interruptions of 
rare earth metal supply chains; and 
(4) any suggestions for legislation or funding 
that would mitigate supply chain security gaps. 
SEC. 5. RESTRICTION ON USE OF CHINESE-MADE RARE 
EARTH 
METALS 
IN 
MILITARY 
TECH-
NOLOGIES. 
(a) IN GENERAL.—The Secretary of Defense shall re-
quire that, for any contract entered into or renewed on 
or after December 31, 2026, for the procurement of a sys-
tem the export of which is restricted or controlled under 
the Arms Export Control Act (22 U.S.C. 2751 et seq.), 
no rare earth metals processed or refined in the People’s 
Republic of China may be included in the system. 
(b) WAIVER.—The Secretary may waive the restric-
tion under subsection (a) upon a determination that— 
(1) rare earth metals of sufficient quantity and 
quality are not available at reasonable prices from 
sources outside of the People’s Republic of China; 
and 
(2) such a waiver is in the interests of national 
security. 
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SEC. 6. COMPLIANCE WITH CONTRACTING REQUIREMENTS. 
(a) IN GENERAL.—Not later than September 30, 
2022, and every 2 years thereafter, the Comptroller Gen-
eral of the United States shall audit the extent of compli-
ance or noncompliance with the requirements of sections 
4 and 5 of this Act, and section 2533c of title 10, United 
States Code, through a random sampling of contracts en-
tered into by the Department of Defense during the 2- 
year period preceding the audit. 
(b) REPORT REQUIRED.—Not later than 30 days 
after the completion of an audit under subsection (a), the 
Comptroller General shall submit to the appropriate con-
gressional committees an assessment of— 
(1) the inclusion by the Department of Defense 
of necessary contracting clauses in relevant con-
tracts; and 
(2) compliance by contractors of the Depart-
ment with sections 4 and 5 of this Act and section 
2533c of title 10, United States Code. 
(c) REFERRAL.—The Comptroller General shall pro-
vide the Department of Justice with the resources and au-
thorities needed for any enforcement actions against enti-
ties that have failed to comply with the requirements of 
section 4 or 5 of this Act or section 2533c of title 10, 
United States Code. 
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SEC. 7. INVESTIGATION OF UNFAIR TRADE PRACTICES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the United States Trade 
Representative, in coordination with the Secretary of Com-
merce, shall initiate an investigation under title III of the 
Trade Act of 1974 (19 U.S.C. 2411 et seq.) to determine 
whether acts, policies, and practices of the Government of 
the People’s Republic of China related to technology trans-
fer, intellectual property, or innovation with respect to 
rare earth metal mining, separation, metallization, 
alloying, or magnet manufacturing, or related processes, 
are acts, policies, and practices described in subsection (a) 
or (b) of section 301 of that Act (19 U.S.C. 2411). 
(b) REPORT REQUIRED.— 
(1) IN
GENERAL.—Not later than 180 days 
after initiating the investigation required by sub-
section (a), the Trade Representative shall submit to 
the appropriate congressional committees a report 
assessing the necessity of trade enforcement actions 
to deter the Government of the People’s Republic of 
China from further interference in the rare earth 
metals market. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include— 
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(A) a summary of actions taken by the 
Government of the People’s Republic of China 
to disrupt supply chains for rare earth metals; 
(B) a summary of the world market for 
rare earth metals at each stage of the supply 
chain, including the ability of producers in the 
United States and countries that are allies of 
the United States to meet the national security 
and commercial needs of the United States; 
(C) determinations with respect to whether 
further action under title III of the Trade Act 
of 1974 (19 U.S.C. 2411 et seq.), section 232 
of the Trade Expansion Act of 1962 (19 U.S.C. 
1862), or any other provision of law is nec-
essary to deter the Government of the People’s 
Republic of China from further interference in 
the rare earth metals market; and 
(D) recommendations for such other au-
thorities as the Secretary considers necessary to 
deter the Government of the People’s Republic 
of China from further interference in the rare 
earth metals market. 
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SEC. 8. PRODUCTION IN AND USES OF RARE EARTH MET-
ALS BY UNITED STATES ALLIES. 
(a) POLICY.—It shall be the policy of the United 
States to encourage countries that are allies of the United 
States to eliminate their dependence on non-allied coun-
tries for rare earth metals to the maximum extent prac-
ticable. 
(b) REPORT REQUIRED.—Not later than December 
31, 2022, and annually thereafter, the Secretary of De-
fense, in coordination with the Secretary of State, shall 
submit to the appropriate congressional committees a re-
port— 
(1) describing in detail the discussions of such 
Secretaries with countries that are allies of the 
United States concerning supply chain security for 
rare earth metals; 
(2) assessing the likelihood of those countries 
discontinuing the use of rare earth metals from the 
People’s Republic of China or other countries that 
such Secretaries deem to be of concern; and 
(3) assessing initiatives in other countries to in-
crease rare earth metals production capabilities. 
Æ 
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