Bipartisan Bill Targets China's Grip on Permanent Magnet Supply Chain

Bipartisan legislation targets China's control of permanent magnets by supporting domestic production from rare earth oxide through finished components, including breakthrough rare-earth-free technologies critical for national security.

A new bipartisan bill aims to break China's stranglehold on permanent magnets, critical components used in everything from motors and wind turbines to industrial robots and guided munitions. The Magnets Value Chain Support Act of 2026, introduced June 17, 2026, by Chairman John Moolenaar (R-MI) and Ranking Member Ro Khanna (D-CA) of the Select Committee on China, tackles the entire production chain from rare earth oxide to finished magnets to the technologies that depend on them. The legislation comes as China continues to corner the market on critical minerals, frequently restricting exports and disrupting global supply chains.

The bill includes a crucial provision that recognizes iron nitride magnets as equally important as rare earth magnets for the U.S. economy, supporting innovation in magnet production that doesn't rely on rare earth materials. Permanent magnets are essential inputs in motors, generators, wind turbines, industrial robots, and guided munitions—technologies the U.S. depends on for both economic growth and national security. Niron Magnetics, a leading producer of iron nitride magnets, applauded the move, with CEO Jonathan Rowntree noting that "Congress is sending a clear signal to innovators, manufacturers, and investors that the U.S. is committed to building resilient supply chains."

The National Association of Manufacturers has led advocacy efforts for policies that secure access to critical minerals and diversify supply chains away from China. Earlier in 2026, the NAM released a comprehensive agenda for critical minerals policy, including a two-pronged framework that couples domestic permitting reform and strengthened financial resources with international partnerships to rebalance global supply chains. The NAM has also championed the DOMINANCE Act, another measure aimed at expanding U.S. access to critical minerals.

NAM President and CEO Jay Timmons explained why the issue matters now: "China's dominance of critical mineral supply chains poses a growing threat to America's manufacturing competitiveness, economic security and technological leadership—at a time when manufacturers need reliable access to these materials more than ever." By supporting both rare earth and rare-earth-free magnet technologies, the bill aims to reduce foreign material dependencies while accelerating domestic manufacturing growth. The legislation signals congressional commitment to building resilient supply chains that don't leave American manufacturers vulnerable to export restrictions from geopolitical rivals.