Rare Earths, Lithium, and More: Pentagon Invests $2 Million in Domestic Refinery

by | 10. Sep 2025 - 13:11 | Economy

ReElement Technologies has received funding to expand the downstream segment of the critical minerals value chain.

The U.S. Department of Defense is supporting domestic critical materials company ReElement Technologies, a subsidiary of American Resources Corporation, with a $2 million grant. The funding aims to strengthen so-called midstream technologies, which cover the part of the value chain that processes, refines, or recycles minerals. Specifically, the investment will support sourcing critical minerals from allied countries and domestic processing of these strategic materials.

ReElement operates a refinery in Noblesville, Indiana, capable of processing a variety of materials, including light and heavy rare earths as well as lithium. Both ores and recycled materials can serve as feedstock. According to CEO Mark Jensen, the plant can supply many, or even all, of the critical minerals required by the U.S. defense industry. The underlying refinement method was initially developed by the pharmaceutical company Purdue for the production of high-purity pharmaceuticals. To reduce reliance on China, ReElement is pursuing international partnerships.

Government Investment Highlights Domestic Supply Chain

The U.S. government has prioritized strengthening the domestic supply of critical materials for both commercial and military applications. In March, President Trump launched immediate measures to accelerate and fund related projects. Just a month ago, the Department of Energy announced nearly $1 billion in funding for mining, processing, and recycling critical minerals.

The Department of Defense is also supporting multiple initiatives, including recovering gallium from electronic waste using high-temperature processing and developing a domestic tungsten mine. One of the most high-profile moves was the announcement of the government becoming the largest shareholder in MP Materials, the leading U.S. rare earth producer, including a ten-year off-take agreement with price guarantees.

Photos: TRADIUM GmbH, Just_Super via Canva, Montage: rawmaterials.net