DoD invests $500 million in Phoenix Tailings for rare earth metals expansion

The Defense Department announced June 16 that its Office of Strategic Capital would loan Phoenix Tailings, Inc., $500 million in support of the minerals processing company’s expansion, which includes a new rare earth processing factory. According to a Department statement, the $500 million in federal money adds to more money from private investors to total $1 billion for the company’s expansion.

Phoenix Tailings currently operates two metallization plants in Burlington, Massachusetts, and Exeter, New Hampshire. The new money will go towards expanding both factories as well as construction of a third referred to by the company and Department as “Freedom Facility.” The planned location, cost, and production output of the Freedom Facility were not disclosed.

According to Phoenix Tailings and the Department of Defense, the money will go towards shoring up the middle of the U.S. rare earth supply chain, which Phoenix called a crucial “link” between mines and recyclers on one end with manufacturers and energy infrastructure on the other. According to Phoenix Tailings COO Anthony Balladon, the Freedom Facility is planned as a midstream plant meant to work between rare earth producers and customers by producing light and heavy rare earth metals from recycled materials, secondary sources, and concentrates. Phoenix says it expects the plant to be operational by 2028.

In a statement, Director of the Office of Strategic Capital David A. Lorch cast the investment as a way to fill a shortage in U.S. production.

What people are saying

“Every team member at Phoenix Tailings understands the responsibility entrusted to us. We know what is at stake, and we know that failure is not an option,” said Nicholas Myers, CEO of Phoenix Tailings. “This mission is bigger than any one company. It is about strengthening American industry, securing critical supply chains, and ensuring our nation has the resources it needs to thrive. To the American people: you have our word that we will work tirelessly to achieve that mission, and we will not let you down.”

“Supporting domestic processing for critical minerals and rare earths is a key focus for OSC, and the rare earth midstream processing capabilities that Phoenix Tailings represents are key shortage areas that need to be rapidly addressed,” said David A. Lorch, Director of the DoD’s Office of Strategic Capital. “We are pleased to support Phoenix Tailings in building the company’s Freedom Facility, which will represent an important step in strengthening the full mine-to-magnet supply chain in the United States.”

 “By creating a midstream facility like this, we are empowering virtually every part of the market and rebuilding the rare earth sector as a truly collaborative industry,” said Anthony Balladon, COO of Phoenix Tailings. “We will ensure end customers get access to the rare earth metals they urgently need, while helping mines and recyclers get up and running by purchasing their output, which would otherwise have to move through other nations. The Freedom Facility is designed to serve as the backbone of a resilient Western rare earth supply chain.”