(a) Analysis required
(1) In general
The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment and other appropriate officials, shall conduct an analysis of each item described in subsection (c) and shall make recommendations for action, consistent with the policies, programs, and activities required under chapters 381 through 385 and chapter 389 of title 10, United States Code, chapter 83 of title 41, United States Code, and the Defense Production Act of 1950 ( 50 U.S.C. 4501 et seq. ), including—
actions for restricting procurement of each such item (with appropriate waivers for cost, emergency requirements, and nonavailability of suppliers), including such restrictions applicable to—
domestic suppliers;
suppliers in the national technology and industrial base (as defined in section 4801 of title 10, United States Code); or
suppliers in other allied country;
actions for increasing Federal Government investment in research and development or using other available authorities such as contracts, grants, loans, cooperative agreements, or other transaction authorities, including actions to—
expand sourcing, processing, production, manufacturing capability, or production capacity of each such item;
diversify sources of supply of each such item; or
promote alternative approaches for addressing military requirements for each such item;
actions for prohibiting procurement each such item from selected sources or countries;
stockpiling actions for each such item, including creating incentives for domestic suppliers to expand and retain capacity such as—
use of long-term purchasing agreements; or
restrictions related to provenance of each such item purchased for such stockpile;
actions for increasing availability of each such item through recycling or reuse; or
a combination of actions described under subparagraphs (A) through (E).
(2) Considerations
In conducting the analysis described in paragraph (1), the Secretary shall consider how any actions taken under the analysis would enhance or improve—
national security;
the economy;
current and potential suppliers of the items in subsection (c), including the ability of such suppliers to meet anticipated surge production requirements of the Department of Defense; and
implementation of any existing treaties or international agreements to which the United States is a party.
(b) Reporting on analyses, recommendations, and actions
Not later than October 1, 2027, the Secretary of Defense shall submit to the congressional defense committees a report containing the following:
A summary of the findings of the analyses undertaken for each item pursuant to subsection (a).
Relevant findings and recommendations for action resulting from such analyses.
Descriptions of specific actions undertaken or planned to be taken as a result of the analyses, including schedule and resources allocated for any planned actions.
Any relevant findings or recommendations from such analyses, as appropriate, that should be incorporated into one or more of the following:
The biennial report to Congress on the national technology and industrial base required under section 4814 of title 10, United States Code.
The annual report on unfunded priorities of the national technology and industrial base required under section 4815 of such title.
The Department of Defense national security strategy for the national technology and industrial base and associated policy guidance prescribed under section 4811(c) of such title.
Activities to modernize acquisition processes to ensure integrity of industrial base pursuant to section 4819 of such title.
Activities and associated expenditures related to defense supply chains, including for material, material production, components, subassemblies, and finished products, testing and qualification, infrastructure, facility construction and improvement, and equipment needed in accordance with 4817 of such title.
Activities of the Office of Strategic Capital.
Defense memoranda of understanding and related agreements between the Secretary of Defense, acting on behalf of the United States, and one or more foreign countries considered in accordance with section 4851 of such title.
Activities of the Industrial Analysis Group (or successor group) of the Defense Contract Management Agency.
Activities of the Warstopper Program (or successor program) of the Defense Logistics Agency.
Industrial base or acquisition policy changes.
Legislative proposals for modifications to relevant statutes.
(c) Items described
The items described in this subsection are the following:
A material or other item of supply for which the Secretary or another designated official has issued a waiver or exception to a statutory sourcing restriction, or for which a domestic non-availability determination has been applied.
Strategic and critical materials (as defined in section 12(1) of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98h–3(1) ), including rare earth materials.
Strategic and critical minerals derived from recycled or reused minerals and metals.
Printed circuit boards and components of printed circuit boards.
Microelectronic, semiconductor, and data storage components.
Neodymium-iron-boron permanent magnets.
Samarium and samarium-cobalt permanent magnets.
Neodymium oxide and metal, praseodymium oxide and metal, and neodymium-praseodymium oxide and metal.
Additive powders for specialty metals such as titanium-based and nickel-based alloys.
Tantalum, including tantalum metal, tantalum powder, and tantalum alloys.
Gallium, gallium nitride, and gallium oxide.
Niobium, including niobium metal, niobium powder, and niobium alloys.
Tungsten, tungsten carbide, and tungsten precursors, including tungsten ores and concentrates, ammonium paratungstate, ammonium metatungstate, tungstic acid, sodium tungstate, and tungsten oxides.
Heavy rare earth oxides, namely oxides of erbium, gadolinium, lutetium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium.
Rare earth metals and alloys, namely metals and alloys of erbium, gadolinium, lutetium, neodymium, praseodymium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium.
Rare earth fluorides, namely fluorides of erbium, gadolinium, lutetium, neodymium, praseodymium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium.
Magnesium alloy parts.
High-purity iron suitable for rare earth magnet manufacturing, naval shipbuilding alloys, electrical steel, and other specialty alloys.
Aluminum and aluminum-based alloys.
Graphene and graphene-based materials.
Mesophase pitch, isotropic pitch, and other critical precursor materials for carbon-carbon composites and synthetic graphite.
Boron carbide powder or any finished or semi-finished product containing boron carbide powder.
Optical glass or optical glass systems, as defined in section 834 of the National Defense Authorization Act for Fiscal Year 2026, and weapon sights made from such glass.
Optical transmission equipment, including optical fiber, optical transmitters, and optical cable equipment.
Continuous filament glass fiber yarn.
Ultra-high-molecular-weight polyethylene fiber production capacity.
Copper foil and copper clad laminate (including woven glass mat and glass fibers necessary to produce such laminate).
Chemicals critical to defense applications, as determined by the Under Secretary of Defense for Acquisition and Sustainment.
Non-rare earth permanent magnets composed of materials such as iron nitride, iron-nickel, or manganese bismuth.
Synthetic diamond and super abrasive materials used in defense applications.
(d) Conforming Repeal
Section 849 of the National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ) is repealed.