Pentagon invests $25 mln in rare earths startup ReElement Technologies
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The Pentagon announced a $25 million investment in ReElement Technologies, a U.S. rare earths startup. The funding aims to reduce reliance on Chinese supply chains for critical minerals used in defense and electronics. The move comes as Washington accelerates efforts to secure domestic processing capacity.
The Investment
The Pentagon's Defense Department awarded $25 million to ReElement Technologies, a startup focused on rare earth processing. The company plans to build a commercial-scale facility in Indiana to separate and refine rare earth elements. ReElement claims its technology can process materials more efficiently than traditional methods.
Strategic Context
The investment is part of a broader U.S. push to counter China's dominance in rare earths, which account for about 60% of global production. The Pentagon has allocated over $1 billion since 2020 to secure critical mineral supply chains. ReElement's process could help supply materials for F-35 jets and missile guidance systems.
What's Next
ReElement expects to begin construction of the Indiana facility by early 2027. It remains unclear whether the startup can scale production enough to meaningfully reduce U.S. import dependence.
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Pentagon invests $25 mln in rare earths startup ReElement Technologies
