Washington: US companies are ramping up their efforts to reduce reliance on China for critical minerals essential for major weapons systems. This initiative comes as the Trump administration pushes to expand domestic production of these vital resources.
According to United News of Bangladesh, Phoenix Tailings, a company located in a New Hampshire office park, is at the forefront of these efforts. They are employing electricity to extract critical minerals from mining waste, which are then used in key US weapons, including missiles deployed in the ongoing conflict with Iran. The company has secured a $500 million loan from the Pentagon to enhance its operations. However, constructing a new facility could take up to 18 months, as the administration works to boost domestic supply.
The urgency of this initiative has intensified due to the conflict with Iran, which has depleted US stocks of weapons like Tomahawk cruise missiles and THAAD interceptors. Concurrently, the White House is urging defense contractors to boost production while enforcing stricter regulations against sourcing critical minerals from China.
Anthony Balladon, Phoenix Tailings’ chief commercial officer and co-founder, expressed the challenge of replenishing stocks and scaling up production to meet defense demands and new regulations. Although efforts to develop critical mineral supplies outside China’s control are accelerating, establishing new mines and increasing production of powerful magnets, essential for advanced technologies, could take years.
In the meantime, mining waste is being utilized to meet demand. Phoenix Tailings processes waste from traditional mining and recycles magnets and computer disk drives as raw materials. The Massachusetts-based company plans to expand by building a larger facility to produce critical metals for the defense, aerospace, and automotive industries. The planned facility, dubbed the ‘freedom facility,’ aims to reduce Chinese influence over rare-earth supplies for the US and its allies.
Phoenix Tailings specializes in producing metals essential for strong permanent magnets used in fighter jets, missiles, radar systems, and drones. Balladon emphasized the significant role critical minerals play in defense systems, noting that expensive weapons systems cannot function without these minerals, despite their minimal cost relative to the overall system.
The defense sector, in particular, relies heavily on samarium, requiring between 50 to 100 tons annually, while US production remains limited. Currently, Phoenix Tailings produces approximately 200 kilograms of the metal annually, with plans to increase output to five tons within three months and reach a capacity of 120 tons by next year or 2028.
Meanwhile, Arnold Magnetic Technologies, historically dependent on China for samarium used in precision-guided weapons such as Tomahawk missiles, has turned to France for alternative supplies. The company sources the material from Solvay, a Belgium-based chemical company that resumed processing rare earths from old mining waste in La Rochelle.
Solvay’s operations have expanded to include other rare earths, like samarium, in response to growing demand for permanent magnets, geopolitical concerns over supply chains, and a desire for more diversified and traceable sources in Europe and the US. Arnold CEO Matt Blake stated that the higher cost of sourcing samarium from Solvay, as opposed to China, is not a significant issue, given that magnets account for a small portion of a weapons system’s cost.
However, concerns about the supply of other critical minerals persist. The US remains reliant on imports of tungsten, with China controlling roughly 80% of global mine production and an even larger share of processing. Brodie Sutherland, CEO of Patriot Critical Minerals Corp, indicated that US efforts to increase tungsten production will require years, necessitating reliance on existing stockpiles, increased recycling, and limited supplies from countries other than China.
The urgency to boost production has increased as renewed conflict with Iran exerts additional pressure on US stocks of advanced missile interceptors, including Patriots and THAADs. The Center for Strategic and International Studies recently highlighted concerns about diminished US firepower in potential future conflicts with China. In May, the Washington-based think tank warned that replenishing stocks of Tomahawks, Patriots, and THAAD interceptors could take at least three years.
In response, President Donald Trump has implemented tighter restrictions on defense contractors sourcing critical materials from China. A July 20 executive order mandates that critical materials and components required for the manufacture, maintenance, and repair of US military equipment be sourced domestically or from allied countries.
Lockheed Martin, which produces THAAD systems and other weapons, regularly assesses the global rare-earth supply chain to ensure access to critical materials. However, several other major US defense contractors, including Raytheon Technologies and Northrop Grumman, did not comment on the situation.
Despite the challenges, Balladon remains optimistic that US companies can expand production with the necessary support and partnerships. “Ultimately, with the right support and partners across the industry, we think we can make it happen,” he stated.