On June 25, the U.S. Army announced the conditional award of long-term leases to four companies to build and operate critical mineral processing facilities on underused Army installations, as part of a broader effort to reduce U.S. dependence on China and strengthen domestic supply chains for minerals essential to national defense.
The projects will process graphite, lithium, boron, dysprosium and terbium—materials used in munitions, missiles, batteries, sensors, unmanned systems and other defense technologies. The facilities are planned for Army installations in Alabama, Arkansas, Texas and Utah.
According to the Army, the facilities will be privately financed, built and operated under long-term leases on Army-owned land. The agreements remain subject to final negotiations, environmental reviews and other regulatory requirements.
The announcement follows President Donald Trump’s executive actions aimed at expanding domestic production and processing of critical minerals, an area where the United States has long relied on foreign suppliers. Army officials said the initiative is designed to accelerate the growth of a secure domestic industrial base while making productive use of underutilized military property.
“The ability to process critical minerals on U.S. soil is a national-defense priority required for munitions, missiles, sensors, batteries, and the platforms our Soldiers depend on,” said Dr. Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment. “Leveraging our legal authorities and land, the U.S. Army is able to help nurture a critical minerals industrial base which equips and sustains America’s Soldiers without putting any taxpayer dollars at risk.”
READ MORE:
- Japan Accelerates Deep-Sea Rare Earth Development Near Minamitori Island to Cut Dependence on China
- Taiwan Develops Rare Earth Extraction Tech to Support ‘Non-China Supply Chain’
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Army expands mineral processing
According to The Wall Street Journal (WSJ), the agreements represent an unconventional public-private partnership. Rather than collecting traditional lease payments, the Army will receive a share of the processed mineral output, giving the military direct access to strategic materials used in equipment ranging from drones and missile systems to body armor.
Army officials told the newspaper the four projects are expected to attract about $2 billion in private investment. Construction could begin as early as 2027, with commercial production targeted for 2028. The processing plants will be built on existing industrial Army depots, allowing developers to use established infrastructure such as power, transportation links and wastewater treatment facilities.
Deputy Undersecretary of the Army David Fitzgerald said the initiative’s primary objective is to make “the American and allied supply chain for these critical minerals more robust and more resilient.” Army officials also cited concerns that China could further restrict exports of strategically important minerals, increasing the urgency of expanding domestic processing capacity.
The companies selected for the projects include Titan Mining, which plans to refine graphite; EnergyX, which will process lithium; Ioneer, which will refine boron; and REalloys, which will process rare earth elements. Industry executives told the WSJ that locating the facilities on military installations helps overcome one of the biggest hurdles facing new processing plants by providing suitable industrial sites with existing infrastructure while easing permitting and environmental challenges.
More details emerge
According to Bloomberg, the initiative marks a new approach by the Trump administration to expand domestic critical mineral production by using military property to host privately operated processing facilities. The agreements with REalloys Inc., Titan Mining Corp., Ioneer Ltd. and Energy Exploration Technologies Inc. (EnergyX) were reached before the Army’s formal announcement on June 25.
Bloomberg reported that REalloys plans to build a rare-earth separation facility at the Tooele Army Depot in Utah, where processed material would be stockpiled on-site for military use. Titan Mining is expected to develop graphite purification facilities at the Pine Bluff Arsenal in Arkansas and the Anniston Army Depot in Alabama, while EnergyX will build a lithium processing plant and Australia-based Ioneer will construct a boron processing facility.
The report said the projects reflect the administration’s broader effort to reduce U.S. dependence on foreign—particularly Chinese—suppliers of strategically important minerals used in defense systems, electric vehicles and consumer electronics. While Washington has previously supported the sector through loans and equity investments, Bloomberg said using Army bases for mineral processing represents a new strategy to accelerate domestic production and strengthen supply-chain security.
