AUVSI Endorses the Magnets Value Chain Support Act of 2026

June 24, 2026

AUVSI endorses the Magnets Value Chain Support Act of 2026, introduced by United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party Chairman John Moolenaar (R-MI) and Ranking Member Ro Khanna (D-CA). The bill seeks to boost U.S. production by creating a tiered production tax credit spanning the full domestic magnet supply chain, from rare earth oxide production through finished magnet manufacturing, and a demand-side credit for U.S. motor manufacturers that source qualifying domestically produced magnets. 

AUVSI has long warned of the danger of strategic dependence on the People’s Republic of China for rare earth magnets and called for Congressional action to address this economic and national security threat.   

Permanent magnets are foundational to the uncrewed and autonomous systems industry. They power the motors, generators, and actuators that enable uncrewed aerial, ground, and maritime systems, advanced air mobility platforms, and the defense systems on which U.S. military readiness depends. China has achieved near-monopoly control over this supply chain through decades of state-directed strategy and has already exercised that leverage through export restrictions that exposed the depth of American dependence. The risk of continued inaction is real and growing. 

“Uncrewed and autonomous systems cannot fly, drive, sail, or fight without high-performance permanent magnets, and right now the United States is dangerously dependent on a strategic adversary for these critical components,” said Michael Robbins, President & CEO of AUVSI. “The Magnets Value Chain Support Act takes a comprehensive, market-oriented approach to rebuilding a supply chain that is central to both American economic competitiveness and national security. Chairman Moolenaar and Ranking Member Khanna deserve great credit for bringing both sides of the aisle together around legislation that addresses this vulnerability at every link in the chain.” 

AUVSI looks forward to working with Chairman Moolenaar, Ranking Member Khanna, and others in Congress to advance this legislation and the broader supply chain resilience policies needed to ensure American uncrewed and autonomous systems are not left dependent on foreign adversaries for components critical to their operation.