New legislation would incentivize the domestic production
of neodymium iron boron (NdFeB) rare earth permanent magnets used in
electric vehicles, renewable energy, and the defense industrial base
Washington, DC - 
(NewMediaWire) - August 10, 2021 - USA
Rare Earth LLC, the operator and owner of 80% of the Round Top (“Round Top”) Heavy
Rare Earth, Lithium and Critical Minerals Project in Hudspeth County, Texas,
together with its joint venture partner Texas Mineral Resources Corp (OTCQB:
TMRC), is pleased to release the following statement by Pini Althaus, Chief
Executive Officer of USA Rare Earth, in response to the introduction of the Rare Earth Magnet Manufacturing Production Tax
Credit Act of 2021 by U.S. Representatives Eric Swalwell (D-CA) and
Guy Reschenthaler (R-PA), co-chairs of the Congressional Critical Materials
Caucus:
"USA Rare Earth applauds
the introduction of the Rare Earth Magnet Manufacturing Production Tax Credit
Act and efforts by Congress to restore this critical U.S. production
capability,” said Pini Althaus, CEO of USA Rare Earth. “These incentives would
be a boost to U.S. manufacturers and would help establish a beachhead for NdFeB
magnet production in the U.S. The legislation also reflects the urgent demand
by automakers for the rare earth magnets necessary to transition to
zero-emission vehicles by 2030, and it underscores the importance of the
parallel requirements for the U.S. defense industrial base.”
Mr. Althaus continued, “This
bill would spur domestic manufacturing and reward innovation, and it would help
reshore a vital U.S. supply chain with potential for international
collaboration. Led by the chairs of the Congressional Critical Materials
Caucus, the bill dovetails with the whole-of-government approach underway to
swiftly secure U.S. supply chains and to restore NdFeB magnet manufacturing in
the United States. This is a critical next step following the Executive Order
on America’s Supply Chains, the White House 100-day supply chain review, and
ambitious new targets for electric vehicles. Congress has the opportunity to
scale, strengthen and secure the supply chain for rare earth permanent magnets
as it makes sweeping investments in America’s infrastructure and
transportation.”
Currently, the U.S. lacks a
commercial-scale capability to process rare earth permanent magnets used in the
automotive, aerospace, defense and electronics industries. According to a June
2021 White House report on supply chains, the U.S. has lost four neodymium iron
boron (NdFeB) production facilities since 1992.
In April 2020, USA Rare Earth
acquired the NdFeB permanent magnet manufacturing system formerly owned and
operated by Hitachi Metals in North Carolina. The plant has been idle since
2015 and is the only commercial-scale system of its kind in the United States.
USA Rare Earth is preparing to recommission the system for production during
2022.
Once operational, USA Rare
Earth’s NdFeB magnet plant will produce at least 2,000 tonnes annually of rare
earth magnets, accounting for approximately 17% of the (2019) U.S. permanent
magnet demand. At present, no other NdFeB permanent magnet manufacturing plant
is operational in the United States.
About USA Rare Earth, LLC
USA Rare Earth, LLC owns an 80%
operating joint venture interest in the Round Top Heavy Rare Earth and Critical
Minerals Project located in Hudspeth County, West Texas. Round Top hosts a wide
range of critical heavy rare earth elements, high-tech metals, including
lithium, gallium, zirconium, hafnium and beryllium. The Preliminary Economic
Assessment (PEA, dated August 16, 2019) projects a pre-tax net present value
using a 10% discount rate of $1.56 billion based on a 20-year mine plan that is
only 13% of the identified measured, indicated and inferred resources. The PEA
estimates an internal rate of return of 70% and average annual net revenues of
$395 million a year after average royalties of $26 million a year payable to
the State of Texas. Based on the cost estimates set forth in the PEA, Round Top
would be one of the lowest-cost rare earth producers, and one of the lowest
cost lithium producers in the world.
The Round Top Deposit hosts 16
of the 17 rare earth elements, plus other high-value tech minerals (including
lithium), including 13 of the 35 minerals deemed “critical” by the Department of
the Interior and contains critical elements required by the United States, both
for national defense and industry. Round Top is well located to serve the US
internal demand. In excess of 60% of materials at Round Top are expected to be
used directly in green or renewable energy technologies. In 2020 USA Rare Earth
opened a rare earth and critical minerals processing facility in Wheat Ridge,
Colorado and in April 2020 USA Rare Earth acquired the neodymium iron boron
(NdFeB) permanent magnet manufacturing system formerly owned and operated in
North Carolina by Hitachi Metals America, Ltd.
For more information about USA
Rare Earth, visit www.usare.com
Company Contact:
USA Rare Earth LLC
Pini Althaus, Chief Executive Officer
Email: pini@usare.com
Twitter: @USARareEarth
