Phoenix Tailings, a Massachusetts-based rare-earth refiner, said June 16 it received a conditional US$500 million Pentagon loan commitment to help build a proposed US plant expected to produce a range of rare earths by 2028.

The financing comes from the Defense Department’s Office of Strategic Capital, a Pentagon finance arm set up to mobilize private capital for technologies and supply chains tied to national security.

Phoenix Tailings said the commitment remains subject to financial, legal, technical, and other due-diligence requirements before any loan can close.

The commitment is part of a broader US push to reduce dependence on China, which controls about 90% of global rare-earth separation and processing capacity.

Phoenix Tailings operates a pilot-scale facility in Massachusetts and a plant in New Hampshire.

The company also received a US$66 million Energy Department grant earlier this month to scale up its rare-earth separation technology.

Other companies, including MP Materials and USA Rare Earth, have also secured federal funding for similar US projects.

Federal support for MP Materials has included a US$150 million Pentagon loan to expand heavy rare-earth separation.

🔗 Source: Bloomberg