The US Department of Defence said on Monday it would invest US$25 million in rare earths start-up ReElement Technologies, part of a broader push by the Trump administration to boost domestic supplies of critical minerals and challenge China’s dominance of the sector.
ReElement aims to use a novel processing technology to refine rare earths and other critical minerals at its planned commercial facility in Marion, Indiana.
The rare earths are expected to be used in magnets found in a range of military equipment, including fighter jets, missiles and submarines.
It was not immediately clear if the US$25 million investment is in the form of a grant, loan or another funding mechanism.
Representatives for the Pentagon and ReElement were not immediately available to comment.
China dominates global rare earths processing and magnet production, a strategic supply chain the United States and its allies have been seeking to diversify.
