Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Phoenix Tailings has secured a conditional commitment for USD 500 million in long-term debt financing from the Pentagon’s Office of Strategic Capital to support the development of a rare earth processing facility in the United States. The funding forms a key part of a USD 1 billion project designed to strengthen domestic processing of critical minerals and reduce reliance on overseas supply chains, particularly China. The facility will process both mined concentrates and recycled materials into rare earth metals used across defence, technology and industrial sectors, with commercial operations targeted for 2028.
Phoenix Tailings has received a conditional commitment for USD 500 million in long-term debt financing from the Pentagon’s Office of Strategic Capital to help develop a rare earth processing facility in the United States.
The financing will support the company’s proposed “Freedom Facility,” a project valued at around USD 1 billion. The plant is planned as a midstream processing hub that will convert raw mined concentrates and recycled scrap materials into critical light and heavy rare earth metals.
The investment forms part of broader efforts by the United States to strengthen domestic supply chains for critical minerals that are essential for defence systems, clean energy technologies, electronics and advanced manufacturing. The project is intended to reduce dependence on overseas refining capacity, particularly in China, which currently dominates the global rare earth processing market.
Phoenix Tailings, a rare earth processing startup backed by BMW and Sumitomo Corporation, plans to begin operations at the facility in 2028. The company has been developing technologies focused on producing rare earth materials through more sustainable and domestic processing methods.
The Pentagon’s support comes as the U.S. government continues to expand investments in critical mineral infrastructure. In recent years, federal agencies have increased funding and policy support for projects involving rare earth mining, processing and recycling to strengthen national security and reduce supply-chain vulnerabilities.
The proposed loan commitment remains conditional and is subject to customary financial, legal and technical due diligence before final approval.
Source Reuters
Advertisement
Facebook
Whatsapp
