New processing capacity planned for graphite, lithium, boron, and heavy rare earths.
The United States is moving ahead with plans to process raw materials at military bases. Initial plans emerged in spring 2025; now they are becoming more concrete. The U.S. Army has selected the first companies to enter negotiations on long-term lease arrangements. New processing capacity for graphite, lithium, boron, and heavy rare earths is planned on underutilized land at military sites.
For heavy rare earths, the Army is in talks with U.S.-based REalloys. The company would be responsible for processing heavy rare earths such as dysprosium and terbium at Tooele Army Depot in Utah. Construction is targeted to begin in the second half of 2027. Both elements are needed for high-performance permanent magnets, which also play an important role in military applications. Global supply is considered critical, as China, the main producer, has placed exports under strict controls.
For graphite, Empire State Mines, a subsidiary of Canadian company Titan Mining, would build processing capacity at two sites: Pine Bluff Arsenal in Arkansas and Anniston Army Depot in Alabama. Here, too, construction is planned for the second half of 2027. China also dominates the graphite market. The material is used, among other things, for anodes in lithium-ion batteries and is therefore considered an important raw material for electric mobility, energy storage, and defense applications.
Additional projects involve lithium and boron: EnergyX was selected for Red River Army Depot in Texas, and Ioneer USA for Tooele Army Depot in Utah.
Under the proposed arrangements, the private partners would finance, design, build, operate, and eventually decommission the facilities. Ownership of the land remains with the Army. The projects have not yet been finalized; lease agreements, environmental reviews, and permits are still pending.
Photo: iStock/Michael Warren
