Obtaining National and Secure Homeland Operations for Rare Earth Manufacturing Act of 2023 or the ONSHORE Manufacturing Act of 2023 This bill sets forth provisions to support secure supply chains of rare earth elements. A rare earth element means a natural element associated with (1) the metallic element scandium, with atomic number 21; (2) the metallic element yttrium, with atomic number 39; or (3) any of the series of 15 metallic elements between lanthanum, with atomic number 57, and lutetium, with atomic number 71, on the periodic table. The Department of Energy (DOE) must establish a program that provides financial assistance for facilities located in the United States that produce finished rare earth products from purified rare earth elements. Financial assistance may be provided to (1) construct such facilities, (2) support workforce development for the facilities, or (3) support site development and technological upgrade for facilities. The Department of the Treasury may establish the Minerals Security Partnership Fund to support the development and adoption of a secure supply chain for rare earth elements. DOE must also establish an initiative with educational, workforce training, and apprenticeship programs relating to advanced rare earth element mining, separation, processing, metallurgy, and advanced equipment maintenance capabilities. In addition, the President must develop a plan of action for using the authorities available under the Defense Production Act of 1950 to establish or enhance a domestic production capability for finished rare earth products and related technologies.
If enacted, SB44 is poised to significantly enhance the capabilities of domestic facilities engaged in rare earth metallurgy. It proposes the creation of a Minerals Security Partnership Fund, which will facilitate investments in this sector. This fund aims to not only support the construction of new facilities but also promote workforce development initiatives, vocational training, and apprenticeships related to advanced rare earth mining and processing. Additionally, the bill underscores the need for transparency and cooperation among international partners to ensure secure supply chains.
SB44, also known as the Obtaining National and Secure Homeland Operations for Rare Earth Manufacturing Act of 2023 (ONSHORE Manufacturing Act), seeks to bolster the domestic production and supply chain of rare earth elements in the United States. The bill mandates the establishment of a program by the Secretary of Energy to provide financial assistance for the construction, expansion, and technological upgrading of facilities that produce finished rare earth products. It emphasizes the need for a secure supply chain that is vital for various sectors, including defense and technology.
However, the bill has raised questions regarding the potential exclusion of foreign entities from participation in funded projects and how this might impact international competitiveness. Proponents argue that limiting foreign investment will safeguard national security and ensure the integrity of supply chains. Critics, on the other hand, worry that such restrictions could deter potential investments from global partners, ultimately limiting technological advancements and financial growth in the rare earth sector. The bill's requirement for the Secretary to submit a plan of action under the Defense Production Act also introduces complexity concerning its execution and the necessary collaboration among multiple federal agencies.