U.S. Pushes Domestic Rare-Earth Production as China Grip Threatens Weapon Supply
The United States is fast-tracking domestic rare-earth extraction, funding a New Hampshire refinery to lessen reliance on Chinese magnets for defense systems.
A $500 million Pentagon loan will enable Phoenix Tailings to construct a new "Freedom" facility in Exeter, New Hampshire, to separate and metallize rare-earth elements from tailings and recycled magnets, aiming to cut U.S. dependence on China's processing monopoly. The push follows a Trump administration executive order banning defense contractors from using Chinese critical-mineral components and comes as the Iran war depletes U.S. missile stocks.
Phoenix Tailings currently produces about 200 kg of neodymium-praseodymium annually and plans to reach 5 tons within months, targeting 120 tons by 2028. Meanwhile, Arnold Magnetic Technologies is turning to a revived Solvay plant in La Rochelle, France, for samarium despite higher costs. Other firms, such as Patriot Critical Minerals, warn that U.S. tungsten supplies must be developed domestically before 2027. Officials say meeting defense demand will require expanded recycling, inventory use, and industry partnerships.
Why it matters
Domestic rare-earth production is crucial for U.S. weapons as Chinese control threatens supply amid rising conflict demands.
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