en.Wedoany.com Reported - U.S. rare earth refiner Phoenix Tailings has received a conditional $500 million loan from the Pentagon's Office of Strategic Capital to build a domestic midstream rare earth processing facility. The funding is part of an approximately $1 billion U.S. plan aimed at expanding the country's capacity to separate and produce rare earths, a group of 17 elements widely used in products such as smartphones, electric vehicles, and fighter jets.
Phoenix Tailings focuses on rare earth separation and metallization, a technical midstream process that fills a critical gap between raw material mining and permanent magnet production. The Office of Strategic Capital's conditional commitment provides long-term debt financing for the construction of a new plant called the "Freedom Facility." This facility will support a comprehensive financing plan of approximately $1 billion to rebuild the U.S. rare earth industrial base. The company stated that once operational, the facility will process multiple feedstocks to produce light and heavy rare earth metals for U.S. industry, defense systems, and allied supply chains.
The "Freedom Facility" aims to address supply chain constraints by building large-scale separation and metallization capacity, serving mines, recyclers, manufacturers, and government entities. The company currently operates two metallization facilities in Burlington, Massachusetts, and Exeter, New Hampshire. The rare earth midstream supply chain is a critical link connecting raw material suppliers such as mines and recyclers, downstream manufacturers, and end users.
U.S. defense systems, advanced manufacturing, energy infrastructure, and consumer technology rely heavily on overseas refined critical materials, primarily from China, which dominates global rare earth processing. Building a domestic supply chain has become a national security priority for the U.S. and its allies. David A. Lorch, Director of the Office of Strategic Capital, stated in a press release that supporting domestic processing of critical minerals and rare earths is a key focus for the office, and the midstream rare earth processing capacity represented by Phoenix Tailings is a critical shortage that needs to be addressed quickly.
Anthony Balladon, Chief Commercial Officer of Phoenix, said in another statement that by creating such a midstream facility, they are empowering nearly every part of the market and rebuilding the rare earth industry into a truly collaborative sector. He noted that the facility will ensure end customers receive much-needed rare earth metals while helping mines and recyclers start and operate by purchasing their output. The "Freedom Facility" is designed to become the backbone of a resilient Western rare earth supply chain. It will produce light and heavy rare earth metals from multiple feedstocks, including concentrates, recycled materials, and secondary resources, with initial operations targeted for 2028.
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