The funding aims to expand Phoenix Tailings’ operations and reduce US reliance on overseas rare earth refining.
The US Department of War’s Office of Strategic Capital will provide a $500m loan to Phoenix Tailings to expand rare earth element processing. The loan, part of a broader $1bn financing package, targets midstream supply chain bottlenecks currently dominated by overseas refining.
Rare earth processing in the US has lagged due to limited domestic infrastructure, with most refining occurring abroad. The new Freedom Facility will handle separation and metallisation of light and heavy rare earth metals, supporting defense and industrial supply chains.
The project aims to process concentrates, recycled feedstocks, and secondary materials, enhancing supply chain resilience. It will serve recyclers, manufacturers, and government entities, addressing critical gaps in domestic production.