The US has made more moves to secure its domestic critical minerals supply chains, with the US Army announcing long-term leases to four companies to develop processing facilities on Army land.
These facilities will allow the companies to design, finance, build, and operate critical mineral processing plants domestically, to strengthen domestic supply chains for US industry and defence.
Companies in the scheme include Empire State Mines, a wholly owned subsidiary of Titan Mining (TSX:TI), Energy Exploration Technologies, Ioneer (ASX:INR), as previously reported, and REalloys (NASDAQ:ALOY).
Principal Deputy Assistant Secretary of the Army for Installations, Energy, and Environment Dr Jeff Waksman says that this move is essential for US national defence and security.
“Leveraging our legal authorities and land, the US Army is able to help nurture a critical minerals industrial base which equips and sustains America’s soldiers without putting any taxpayer dollars at risk.”
Today’s announcement is part of the Army’s Strategic Capital Initiatives program, focused on collaboration between the public and private sectors on modernisation efforts. These four awards mark the first time the US Army and Department of War have collaborated with commercial mineral processing facilities.
Deputy Under Secretary of the Army David Fitzgerald says that the government is excited about the potential for this type of industry collaboration.
“This is proving the Secretary of the Army’s theory that we can operate in a different way that benefits both the Army and industry — as well as gets the Army the things that it needs critically on a timeline that would have been unthinkable 18 months ago.”
The formal lease agreements between the Army and the companies are currently in negotiation with development expected to begin in 2027 and initial operating capability targeted for 2028.
Eligibility under the program was limited to companies organised under US law, with majority domestic ownership and control, as well as a US place of business.
Strategic critical minerals for defence
The companies selected for this round of leases are focused on boron, dysprosium and terbium, which are heavy rare earth elements, as well as graphite and lithium — all of which have key defence applications.
Boron can be converted into defence-grade boron carbide and high-purity boron compounds, which are essential for force protection.
Boron is extremely hard and lightweight and, for defence, is primarily used in ballistic armour plating.
Dysprosium and terbium, sourced mainly through allied Canadian feedstocks, are used for precision guidance and defence electronics. These heavy rare earths are used to manufacture high-performance permanent magnets that can withstand extreme temperatures and are used in precision-guided munitions, electronic motors, and sonar and radar networks.
Graphite is essential for energy storage, thermal protection, and aerospace systems, primarily used in lithium-ion batteries that power unmanned aerial platforms, hybrid vehicles, and other electronics.
Finally, lithium underpins the energy density required for next-generation military power systems.
The US Army’s move signals another decisive shift in the US, as Washington accelerates efforts to ensure the domestic supply of strategic critical minerals that underpin modern defence, in an environment of global competition and tightening export flows.
Write to Amy Rotman at Mining.com.au
Images: US Army
