ASSESSMENT AND PLAN FOR CRITICAL RARE EARTH MATERIALS IN DEFENSE APPLICATIONS.

SEC. 843. ASSESSMENT AND PLAN FOR CRITICAL RARE EARTH MATERIALS IN DEFENSE APPLICATIONS.(a) Assessment Required.—124 STAT. 4283(1) In general.—The Secretary of Defense shall undertake an assessment of the supply and demand for rare earth materials in defense applications and identify which, if any, rare earth material meets both of the following criteria:(A) The rare earth material is critical to the production, sustainment, or operation of significant United States military equipment.(B) The rare earth material is subject to interruption of supply, based on actions or events outside the control of the Government of the United States.(2) Evaluation of supply.—The assessment shall include a comprehensive evaluation of the long-term security and availability of all aspects of the supply chain for rare earth materials in defense applications, particularly the location and number of sources at each step of the supply chain, including—(A) mining of rare earth ores;(B) separation of rare earth oxides;(C) refining and reduction of rare earth metals;(D) creation of rare earth alloys;(E) manufacturing of components and systems containing rare earth materials; and(F) recycling of components and systems to reclaim and reuse rare earth materials.(3) Evaluation of demand.—The assessment shall include a comprehensive evaluation of the demand for and usage of rare earth materials in all defense applications, including—(A) approximations of the total amounts of individual rare earth materials used in defense applications;(B) determinations of which, if any, defense applications are dependent upon rare earth materials for proper operation and functioning; and(C) assessments of the feasibility of alternatives to usage of rare earth materials in defense applications.(4) Other studies and agencies.—Any applicable studies conducted by the Department of Defense, the Comptroller General of the United States, or other Federal agencies during fiscal year 2010 may be considered as partial fulfillment of the requirements of this section. The Secretary may consider the views of other Federal agencies, as appropriate.(5) Specific material included.—At a minimum, the Secretary shall identify sintered neodymium iron boron magnets as meeting the criteria specified in paragraph (1).(b) Plan.—For each rare earth material identified pursuant to subsection (a)(1), the Secretary shall develop a plan to ensure the long-term availability of such rare earth material, with a goal of establishing an assured source of supply of such material in critical defense applications by December 31, 2015. In developing the plan, the Secretary shall consider all aspects of the material’s supply chain, as described in subsection (a)(2). The plan shall include consideration of numerous risk mitigation methods with respect to the material, including—(1) an assessment of including the material in the National Defense Stockpile;(2) in consultation with the United States Trade Representative, the identification of any trade practices known to the Secretary that limit the Secretary’s ability to ensure the long-term availability of such material or the ability to meet the 124 STAT. 4284 goal of establishing an assured source of supply of such material by December 31, 2015;(3) an assessment of the availability of financing to industry, academic institutions, or not-for-profit entities to provide the capacity required to ensure the availability of the material, as well as potential mechanisms to increase the availability of such financing;(4) an assessment of the benefits, if any, of Defense Production Act funding to support the establishment of an assured source of supply for military components;(5) an assessment of funding for research and development related to any aspect of the rare earth material supply chain or research on alternatives and substitutes;(6) any other risk mitigation method determined appropriate by the Secretary that is consistent with the goal of establishing an assured source of supply by December 31, 2015; and(7) for steps of the rare earth material supply chain for which no other risk mitigation method, as described in paragraphs (1) through (6), will ensure an assured source of supply by December 31, 2015, a specific plan to eliminate supply chain vulnerability by the earliest date practicable.(c) Report.—(1) Requirement.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional committees described in paragraph (2) a report containing the findings of the assessment required under subsection (a) and the plan developed under subsection (b).(2) Congressional committees.—The congressional committees described in this paragraph are as follows:(A) The congressional defense committees.(B) The Committee on Science and Technology, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives.(C) The Committee on Energy and Natural Resources, the Committee on Finance, and the Committee on Banking, Housing, and Urban Affairs of the Senate.