Phoenix Tailings Wins $500 Million Pentagon Loan to Expand Rare-Earth Output as China Curbs Supply
Updated
Updated · The Associated Press · Aug 3
Phoenix Tailings Wins $500 Million Pentagon Loan to Expand Rare-Earth Output as China Curbs Supply
2 articles · Updated · The Associated Press · Aug 3
Summary
$500 million from the Pentagon will help Phoenix Tailings build a larger U.S. refinery, though the new factory could take up to 18 months to come online.
The push has intensified as the Iran war depletes Tomahawk and THAAD stocks and Trump tightens rules barring defense contractors from sourcing critical minerals from China.
Phoenix now produces about 200 kilograms of Samarium metal a year, plans to reach 5 tons within three months, and targets 120 tons by next year or 2028.
That scale-up still leaves a wider gap: CSIS says replenishing key missile inventories could take at least three years, while U.S. capacity for minerals such as samarium and tungsten remains limited.
Across the sector, companies are turning to mine waste, recycling and allied suppliers such as France's Solvay, but replacing China's dominance in processing is still expected to take years.