Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended

Defense & Security Energy & Environment Economy & Labor

In simple terms

This determination invokes Section 303 of the Defense Production Act to declare that domestic production capability for Samarium Cobalt Rare Earth Permanent Magnets is essential to national defense, finding that U.S. industry cannot meet this need without presidential action. It authorizes the use of DPA authorities—including purchases, purchase commitments, or other actions—to develop this critical rare earth magnet production capability.

Federal Register Open PDF 84 FR 35975

Record & deadlines

Jul 22, 2019Signed
Signed by the President
Jul 25, 2019FR published
Published in the Federal Register · 84 FR 35975
Federal Register PDF
Date TBD
Federal Register publication

Key directives

Determine domestic Samarium Cobalt Rare Earth Permanent Magnet production essential to national defense under DPA Section 303(a)(5)
Authorize purchases, purchase commitments, or other DPA actions as most cost-effective method to meet need
Direct Secretary of Defense to publish memorandum in Federal Register

Who is ordered

Secretary of Defense · Department of Defense

What to expect

Immediate

DPA Section 303 authorities activated for Samarium Cobalt magnets
Authority for DOD to use purchase commitments and other incentives

Near term (90d)

Potential DOD procurement actions to establish or expand domestic production

Long term

Development of domestic rare earth magnet supply chain
Reduced dependency on foreign rare earth sources

Risks & tensions

Rare earth supply chain heavily concentrated in China creates strategic vulnerability
DPA incentives may distort market economics for rare earth production
Environmental permitting for domestic rare earth mining remains uncertain
No explicit funding amount or timeline specified for procurement actions