Phoenix Tailings receives $500 M Pentagon loan to boost US rare‑earth weapons supply

Phoenix Tailings, a Massachusetts‑based company, plans to build a new facility in Exeter, New Hampshire, to extract critical rare‑earth metals such as neodymium, praseodymium, terbium, dysprosium, samarium and yttrium from mine tailings and recycled magnets. The project, expected to take 14‑18 months, is funded by a $500 million loan from the Pentagon to expand the company’s separation and metallization capacity, a stage where China currently dominates.

The expansion is aimed at meeting U.S. defense needs for systems including Tomahawk cruise missiles, THAAD interceptors and F‑35 fighter jets, as the war in the Middle East has accelerated the drawdown of munitions. The White House has tightened rules banning the use of Chinese‑sourced critical‑mineral components, increasing pressure on domestic producers. Anthony Balladon, Phoenix Tailings’ chief commercial officer and co‑founder, said scaling up will be a “tall order” but essential for replenishing stocks and complying with new regulations. The effort seeks to reduce U.S. reliance on China for rare‑earth processing and secure a domestic supply chain for critical defense materials.