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US Army to build rare earth processing plants on military bases to cut China dependence

US Army to build rare earth processing plants on military bases to cut China dependence

An aerial view of the Pentagon, which houses the US Department of Defense headquarters, in Arlington, Virginia, on May 31, 2026. Photograph: (AFP)

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The US Army has signed agreements to build rare earth, graphite, lithium and boron processing plants on military bases to reduce dependence on China's critical minerals.

The US army is planning to build mineral processing plants in military bases across the country. Pentagon has reached agreement with REalloys Inc, Titan Mining Corp, ioneer Ltd. and Energy Exploration Technologies to set up plants across various bases in the country, reuters reported. Since taking office US President has tried to reduce reliance on China, for rare earth mineral, graphite, lithium and boron, the US Army. This initiative is first of its kind leverages military properties to secure the defense supply chain, establish strategic stockpiles, and aggressively decouple from Chinese monopolies for advanced weapons, semiconductor and electric vehicle battries.

Canadian miner Titan Mining will built and operate graphite purification facilities in at Pine Bluff Arsenal in Arkansas and Anniston Army Depot in Alabama. Its subsidiary, Empire State Mines has received conditional lease for two years for the negotiation and finalization of the formal Business Terms Agreements with the US Army, which could be extended for nearly 50 years.

US based REalloys has also received long term agreement from US army to develop processing facilities for heavy rare earths, including dysprosium and terbium the ⁠Tooele Army Depot in Utah. REalloy said that it could start developing its facility as early as 2027. While construction of Titan's facilities is targeted to begin in the second half of that year.

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While Energy Exploration Technology will develop a domestic lithium processing facility and Sydney based ioneer Ltd. will establish a specialised Boron processing plant.

This is the first time US army has awarded commercial minning facility within military. It is supposed to reduce local zoning and environmental regulatory gridlock. Further reports suggest they are likely to put private capital, unlike tradition government contracts. This is a direct outcome of US President Donald Trump's executive order invoking emergency powers to boost critical minerals production capabilities signed on last March. The geopolitical tension refuses to simmer down as last week China's commerce department signed export controls on US rare earth companies MP Materials Corp and USA Rare Earth Inc.

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The United States is executing an aggressive "mine-to-magnet" reindustrialisation strategy. It has allorted a $725 million conditional loan to the Department of War's Office of Strategic Capital. Energy Fuels rapidly created a close loop western supply chain acquiring Germany's Vacuumschmelze (VAC) for $1.9 billion, which is one of the largest non-Chinese manufacturers of permanent rare-earth magnets.

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Kushal Deb

Kushal Deb is a mid-career journalist with seven years of experience and a strong academic background. Passionate about research, storytelling, writes about economics, policy, cult...Read More