Washington, July 14: The United States has announced a $25 million investment in ReElement Technologies Corp. to expand domestic refining capacity for rare earth elements and other defence-critical minerals, reinforcing the nation’s industrial base and reducing reliance on overseas supply chains.
The funding, announced by the US Department of Defense’s Economic Defense Unit (EDU) in partnership with the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)), will support the expansion of ReElement’s refining operations at its facility in Marion, Indiana.
The investment is expected to boost domestic production of materials essential for advanced defence systems, aerospace manufacturing and secure communications technologies.
“Strengthening our domestic refining capacity for rare earth elements and other critical minerals is a national security imperative,” said Michael Cadenazzi, Assistant Secretary of Defense for Industrial Base Policy.
He added that the investment will help rebuild a domestic “mine-to-magnet” supply chain, ensuring reliable access to the critical materials needed for next-generation defence capabilities.
According to the Department of Defense, the funding will be used for equipment, installation and working capital required to expand ReElement’s production capacity.
The company will process recycled materials, including end-of-life magnets, to produce high-purity rare earth oxides, yttrium, gadolinium, germanium and gallium—materials widely used in advanced defence technologies and other high-tech industries.
Officials said the project highlights close collaboration between the Office of the Under Secretary of Defense for Acquisition and Sustainment and the Economic Defense Unit to identify supply chain bottlenecks and accelerate industrial development using commercial best practices.
George K. Kollitides II, Director of the Economic Defense Unit, said critical minerals are vital for maintaining US military readiness.
“The Economic Defense Unit was established to respond quickly to economic vulnerabilities and strengthen America’s military advantage. This investment helps secure domestic production capacity, reinforces the industrial base and ensures reliable access to materials essential for national security,” he said.
The Department of Defense said the agreement also includes safeguards to protect US interests, including restrictions on transactions involving foreign entities of concern.
The investment forms part of a broader strategy to combine government support with private-sector expertise to accelerate the development of critical industrial capabilities.
Rare earth elements and other critical minerals are essential for a wide range of technologies, including precision-guided weapons, fighter aircraft, naval platforms, radar systems, satellites, advanced communications equipment, electric vehicles, renewable energy systems and consumer electronics.