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The US Department of Defense has announced a US$5.1 million (AU$8.13 million) award under Title III of the Defense Production Act to Rare Resource Recycling Inc.
This funding aims to restart an existing demonstration facility and accelerate the commissioning of a commercial plant, which is expected to produce 50 tonnes of rare earth oxides annually. Rare Resource Recycling Inc (REEcycle) focuses on recovering four rare earth elements vital for neodymium iron boron magnets.
These magnets are crucial in defence applications like electric motors for major air platforms, including the F-35, missiles, submarines and unpiloted vehicles.
The initiative aligns with the 2024 National Defense Industrial Strategy, which seeks to bolster domestic production of critical minerals and enhance supply chain resilience.
The Defence Production Act (DPA), enacted in 1950, empowers the US government to prioritise and support domestic industrial capabilities critical to national security. Rare earth elements (REEs), which include neodymium, praseodymium, dysprosium and terbium, are essential for advanced technologies but are predominantly sourced from overseas, leaving supply chains vulnerable.
Expanding domestic capacity for these materials is crucial for ensuring security and sustainability in defence and other critical industries.
Dr Laura Taylor-Kale, Assistant Secretary of Defence for Industrial Base Policy explained the importance of this program, saying, “A resilient mine-to-magnet supply chain requires diverse sources of rare earth elements. REEcycle’s capabilities will help the United States reduce its dependence on foreign sources by extracting valuable materials that would otherwise go to landfill.”
REEcycle’s proprietary processes recover over 98 per cent of rare earth elements from electronic waste. After restarting its demonstration plant, the company plans to commission a commercial facility and supply rare earth materials to companies involved in downstream metallisation and magnet production.
“By enabling REEcycle to recover critical materials from electronic waste, this award supports the Department of Defense’s efforts to expand the supply of rare earths required for defence manufacturing,” said Anthony Di Stasio, director of the Manufacturing Capability Expansion and Investment Prioritisation directorate.
“These initiatives are vital for mitigating risks to the defence industrial base and reducing reliance on foreign suppliers,” Di Stasio added.
This award is one of six made by the DPA Purchases Office, with a total of US$295.9 million (AU$472.3 million) allocated since the start of FY2024–25. The DPA Purchases Office operates under the MCEIP directorate in the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
