Pentagon OSC Signs $1.2 Billion Rare Earth Loans as Trump Pushes U.S. Magnet Supply Chain
Updated
Updated · Breaking Defense · Jun 18
Pentagon OSC Signs $1.2 Billion Rare Earth Loans as Trump Pushes U.S. Magnet Supply Chain
3 articles · Updated · Breaking Defense · Jun 18
Summary
$1.2 billion in conditional Pentagon loans went this week to Energy Fuels and Phoenix Tailings to expand U.S. rare earth processing, separation and metallization capacity.
Energy Fuels received $725 million for upgrades at Utah's White Mesa Mill and a new rare earth metals and alloy facility, with the company saying it would have 20 years to repay.
Phoenix Tailings secured $500 million for its planned Freedom Facility, which the company aims to open by 2028 to process both light and heavy rare earth minerals.
Defense officials say the financing is meant to secure inputs for weapons production—from fighter jets to precision munitions—arguing scaling output is impossible without minerals such as rare earths, gallium and germanium.
The funding drive still faces scrutiny: Senate Democrats have questioned the legality and rationale of earlier Pentagon support for MP Materials, including a 2025 deal to buy $400 million in stock.
As America builds its rare earth supply chain, how might China strategically disrupt the market to undermine these new multi-billion dollar investments?
With billions invested, can the U.S. rebuild decades of lost expertise in rare earth processing before its critical 2027 defense deadline?
U.S. Commits $725 Million to Energy Fuels for Rare Earth Independence: Inside the White Mesa Mill Expansion
Overview
On June 18, 2026, the U.S. Department of War's Office of Strategic Capital announced a conditional commitment of up to $725 million in senior-secured debt to Energy Fuels Inc. This major investment aims to accelerate the expansion of rare earth element processing in the United States, focusing on Energy Fuels' White Mesa Mill in Utah and a new metals and alloy facility. These efforts are designed to strengthen U.S. supply chains for critical materials, especially permanent magnets, which are vital for national security and economic competitiveness. The financing is still subject to due diligence before it is finalized.