The U.S. Army will locate commercial critical mineral processing facilities on its bases for the first time. According to The Wall Street Journal (WSJ), the Pentagon has entered into preliminary agreements with four companies that will process lithium, graphite, boron and rare earth elements – materials needed to make batteries, drones, armor and other military equipment.
We are talking about the companies Titan Mining, EnergyX, Ioneer and REalloys. The facilities will appear at bases in Texas, Utah, Alabama and Arkansas, according to the WSJ and Bloomberg. Construction of the facilities could begin as early as 2027, and production launch is expected in 2028.
Instead of cash rent, the army will receive a share of the raw materials produced. This will allow the military to directly obtain materials critical to the defense industry. The total investment in the projects is estimated at approximately $2 billion.
“The overarching goal is to make the U.S. and allied supply chain for these critical minerals more resilient and reliable,” the WSJ said. O. Deputy Secretary of the Army David Fitzgerald.
It is noted that the United States wants to localize the supply chain of raw materials and reduce the corresponding dependence on China. According to industry experts, China today controls about 90% of the processing of many rare earth elements and graphite, about 70% of the production of lithium-ion batteries, and at least 80% of the world market for boron compounds.
It is processing, not mining, that is considered the weak point of American industry. Many minerals are mined in the United States, but then sent to China for purification and processing, and then returned back as finished components.
As Bloomberg notes, this is the first time that US military bases have been used to house commercial mineral processing facilities. The Pentagon expects that military infrastructure will speed up the launch of production through access to industrial sites, electricity and water treatment systems.
An additional benefit is considered to be simplification of logistics for the defense sector. For example, EnergyX will process lithium near Red River Army Depot in Texas, a base where the Army recently began accelerated production and testing of small drones. Lithium is a key component of the batteries used in such systems.
Despite government support, experts warn that launching new businesses remains a challenge. Constructing processing facilities requires significant costs, and the projects themselves often face environmental claims due to high water consumption, chemical waste and air pollution risks.
However, Washington believes that without large-scale investments, the United States risks maintaining strategic dependence on Beijing in one of the key industries of the future – from energy and electronics to artificial intelligence and military technology.
