# US Pentagon funding rare‑earth supply chain

> Live situation record from CLSTR: https://clstr.news/situations/us-pentagon-funding-rareearth-supply-chain
> Updated: 2026-08-03T11:09:29.000Z. Sources: 5. Developments: 2.

In July 2026 the U.S. Department of Defense allocated $25 million to the rare‑earth startup ReElement, marking an early step toward building a domestic source of critical minerals. A few weeks later, in August 2026, the Pentagon approved a $500 million loan for Phoenix Tailings, a Massachusetts‑based firm, to construct a processing facility in Exeter, New Hampshire. The plant will extract neodymium, praseodymium, terbium, dysprosium, samarium and yttrium from mine tailings and recycled magnets, materials essential for weapons such as Tomahawk cruise missiles, THAAD interceptors and F‑35 fighter jets. These investments reflect a broader U.S. strategy to reduce reliance on China for rare‑earth processing and secure a domestic supply chain for defense applications.

## Timeline

### 2026-08-03: Phoenix Tailings receives $500 M Pentagon loan to boost US rare‑earth weapons supply

Phoenix Tailings will use a $500 M Pentagon loan to build a 14‑18‑month facility in Exeter, NH, extracting rare‑earth metals from waste to supply U.S. weapons and cut reliance on China.

5 sources. https://clstr.news/cluster/phoenix-tailings-receives-500-m-pentagon-loan-to-boost-us-rareearth-weapons-supply

### 2026-07-12: US Pentagon invests $25 million in rare‑earth startup ReElement

The Pentagon is putting $25 million into Indiana‑based ReElement to refine rare‑earths for defense gear, a step in the U.S. push to cut China dependence on critical minerals.

5 sources. https://clstr.news/cluster/us-pentagon-invests-25-million-in-rareearth-startup-reelement

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Cite as: US Pentagon funding rare‑earth supply chain. CLSTR, https://clstr.news/situations/us-pentagon-funding-rareearth-supply-chain