en.Wedoany.com Reported - The co-founder of US-based Phoenix Tailings stated that a $500 million loan from the US Department of War will help the company deploy rare earth separation and metallization technologies from the Massachusetts Institute of Technology (MIT) on a large scale, building "the backbone of a resilient Western rare earth supply chain."
The company, spun out of MIT in 2018, has raised over $150 million in private capital to develop processes for recovering metals from mine tailings, electronic waste, and product scrap. It operates a 200-ton-per-year facility in Exeter, New Hampshire, demonstrating its ability to separate light and heavy rare earths from various feedstocks.
Co-founder and Chief Technology Officer Tomas Villalon said the "strategic investment" from the Office of Strategic Capital (OSC) of the US Department of War will enable Phoenix to deploy infrastructure that the US has long lacked, while proving that advanced technology can create a safer, cleaner, and more competitive rare earth industry. The company's planned large-scale "Freedom Facility" reportedly has secured approximately $1 billion in funding.
David Lorch, Director of the Office of Strategic Capital, said this week that supporting domestic processing of critical minerals and rare earths is a key focus area for the OSC, and that the midstream rare earth processing capability represented by Phoenix Tailings is a critical bottleneck that needs to be addressed quickly. Lorch, a senior advisor to US Deputy Secretary of Defense Steve Feinberg, noted that he is pleased to support Phoenix in building the Freedom Facility, which will be an important step in strengthening the entire US supply chain from mine to magnet.
Phoenix co-founder and Chief Commercial Officer Anthony Balladon believes the midstream rare earth supply chain is the critical link between raw material producers (including mines and recyclers), downstream manufacturers, and end users (covering US defense systems, advanced manufacturing, energy infrastructure, and consumer technology manufacturers). He stated that establishing such a midstream facility can empower all parts of the market, helping mines and recyclers start and operate by purchasing their output, while ensuring end customers receive the rare earth metals they need, preventing these outputs from flowing to other countries.
The International Energy Agency (IEA), in its "Global Critical Minerals Outlook 2025" report, noted that among 20 important strategic minerals, China is the primary global refiner for 19 of them, with an average market share of 70%. The report stated that the concentration of midstream processing has increased in recent years. The IEA indicated that a surge in export controls on critical materials and technologies, along with new restrictions on rare earth element and lithium-ion battery supply chains, highlights vulnerabilities and risks.
The IEA pointed out that among all critical minerals, rare earth supply has the lowest geographic diversification. For magnet-related rare earths (particularly neodymium, praseodymium, dysprosium, and terbium), China accounted for approximately 60% of global mined production in 2024, followed by Myanmar, Australia, and the United States. In the separation and refining stages, China holds an even greater advantage, accounting for about 91% of global production, with Malaysia far behind.
Phoenix Tailings stated that its Freedom Facility will produce light and heavy rare earth metals from various feedstocks, including concentrates, recycled materials, and secondary resources. The company said the facility is designed to use domestically controlled technology and intellectual property, reducing reliance on related foreign entities, with initial operations targeted for 2028.
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