IPMI and ReMA Call for Collaborative Solution to Catalytic Converter Theft Amid Concerns Over NDAA Amendment
On September 5, 2024, the International Precious Metals Institute (IPMI) and the Recycled Materials Association (ReMA), leading trade organizations in the precious metals recycling sector, formally expressed their opposition to Senate Amendment 2422, part of the proposed National Defense Authorization Act (NDAA) for Fiscal Year 2025. In a letter addressed to key members of the Senate, including Chairman Jack Reed of the Armed Services Committee and Chair Maria Cantwell of the Commerce, Science, and Transportation Committee, ReMA and IPMI raised concerns about the unintended consequences of the amendment, originally introduced as the PART Act, on the precious metals recycling industry.
The associations argue that while they support efforts to curb catalytic converter theft, the current language of the amendment could disrupt the domestic smelting industry. "The amendment, as it stands, could deprive the U.S. smelting industry of approximately 30 percent of the raw material inputs," said Larry Drummond, Executive Director of IPMI. "This disruption risks undermining the supply of critical metals essential to our nation’s economy and defense."
Jonathan Butler, President of IPMI, emphasized the crucial role of the recycling industry in supporting various sectors of the economy. "Our industry is a key player in the circular economy, ensuring that precious metals are recovered and reused," Butler stated. "Any disruption to this process would have far-reaching consequences for industries ranging from automotive to technology and beyond. It’s important that legislation addresses theft in a way that doesn’t place undue burdens on these critical industries."
Billy Johnson, ReMA's Chief Lobbyist, reinforced the significance of the industry's contributions to the sustainability of domestic manufacturing. "The recycled materials industry’s mission is to innovate and find more ways to recycle more material, more efficiently into the everyday items we depend on, make our supply chain more resilient, and manufacturing more self-sufficient. The Administration has identified developing sustainable domestic resources of critical minerals and materials as a top priority to power the manufacturing supply chain. This amendment threatens to disrupt our members’ efforts to advance safe, economically sustainable, and environmentally responsible recycling."
Beyond expressing their concerns, IPMI and ReMA underscored their commitment to being part of the solution to catalytic converter theft. The associations highlighted their work with ScrapTheftAlert.com, a platform that facilitates real-time collaboration between law enforcement and industry stakeholders.
The letter, which details the potential economic impact and suggests alternative measures to address theft without harming the industry, underscores the importance of ongoing collaboration between industry stakeholders and legislators.