The U.S. Army will allow multiple companies to build critical mineral processing plants at military bases across the country as part of the Trump administration’s push for more domestic production.
REalloys Inc., Titan Mining Corp., ioneer Ltd. and Energy Exploration Technologies Inc. have reached agreements with the Pentagon to build the plants, according to people familiar with the matter. The people spoke on condition of anonymity ahead of a formal announcement. The new facility will process rare earth minerals, graphite, lithium and boron, they said.
Increasing U.S. critical mineral production capacity and reducing reliance on imports, especially from China, have been top priorities for the United States president donald trump during his second term. Initiatives included government loans and the acquisition of equity interests in producers, but the use of military property represented a first-of-its-kind approach to mineral processing in the United States.
Rare earths, lithium and graphite are critical for a wide range of applications including consumer electronics, automotive and defense technology.
REalloys will build a rare earth separation facility at Toole Army Depot in Utah, and the rare earths produced will be stored on site for military use, people familiar with the matter said.
Titan Mining will build and operate graphite purification facilities at Pine Bluff Arsenal, Arkansas, and Anniston Army Base, Alabama, people familiar with the matter also said. Energy Exploration Technologies and Sydney-based ioneer, the only non-U.S. company among the four participating companies, will develop a lithium plant and a boron plant respectively.
Titan Mining’s shares rose 12% in New York trading, while ioneer’s depositary receipts rose 7.1%. REalloys recouped some of its previous losses.
this PentagonREalloys, Titan and Energy Exploration Technologies (also known as EnergyX) declined to comment, while ioneer did not immediately respond to a request for comment.
Geopolitical tensions over critical minerals show no signs of easing. Last week, China’s Commerce Ministry imposed export controls on U.S. rare earth companies MP Materials Corp. and USA Rare Earth Inc., while the Group of Seven developed countries set goals to reduce import dependence on China.
U.S. Rare Earths signed an agreement in January to provide $1.6 billion in funding for plans for new mining, processing and magnet manufacturing capabilities. The federal government also unveiled plans in February to build a $12 billion stockpile of critical minerals.
Last week, the Defense Department’s Strategic Capital Office provided a $725 million conditional loan to Energy Fuels Inc. and a $500 million loan to Phoenix Tailings Inc. Days later, Energy Fuels agreed to acquire rare earth magnet supplier Vacuumschmelze GmbH & Co. and its affiliates for $1.9 billion, which will help fund its plants in Germany and Finland as well as a new plant in South Carolina.
Last March, Trump signed an executive order invoking emergency powers to increase critical mineral production capacity, which foreshadowed plans to build mining plants at military bases.
Mines and processing plants are expensive and challenging to build, and are often opposed by people who live near proposed sites. Meanwhile, the Pentagon under Trump has been looking for ways to leverage its properties, including data centers.
REalloys currently produces alloys at a plant in Ohio and works with the Saskatchewan Research Council to produce so-called heavy rare earths such as terbium and dysprosium. Its Utah plant will focus on rare earths, which are in particularly high demand because of their use in heat-resistant magnets for defense and automobiles. The planned facility would not require taxpayer funding, people familiar with the matter said.
The company raised $100 million in a private placement of common stock on Wednesday.
Titan, a company backed by Canadian mining billionaire Richard Walker, owns zinc and graphite projects in New York.
