Four companies have secured agreements with the Pentagon to build critical minerals processing plants on US Army bases, marking the first time military property has been used for this purpose in the country.
The move is part of the Trump administration’s broader effort to build domestic supply chains for materials that the US currently depends heavily on China to supply. The planned facilities will process rare earth minerals, graphite, lithium and boron, covering materials essential to defense systems, electric vehicles and consumer electronics.
Among the companies selected, Titan Mining will build and operate graphite purification plants at Army facilities in Arkansas and Alabama. REalloys meanwhile will set up a rare-earth separation facility at a base in Utah. Boron processing will fall to ioneer, the only non-US participant, while Energy Exploration Technologies takes on lithium with a planned process plant.
Tapping existing military land sidesteps one of the more persistent obstacles in the sector. Building mines and processing plants typically draws pushback from nearby communities and involves lengthy permitting battles. Army bases offer controlled environments where those barriers largely disappear.
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The approval comes as geopolitical pressure in the space has been intensifying. China’s Commerce Department last week placed export controls on two US rare earth producers, MP Materials Corp. and USA Rare Earth Inc. The dependence on Chinese imports by the West meanwhile has become a target of the G7, who recently committed to reduce their reliance on metals from the Asian country.
On the financing side, the Department of War’s Office of Strategic Capital recently committed roughly $1.2 billion across two deals, including a conditional $725 million facility for Energy Fuels Inc. and a separate $500 million facility for Phoenix Tailings. Shortly after receiving its commitment, Energy Fuels this week agreed to acquire rare-earth magnet supplier Vacuumschmelze for $1.9 billion.
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The groundwork for the army base initiative was laid in March of last year, when Trump signed an executive order calling on emergency powers to accelerate domestic critical minerals production.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
