The Department of War on Thursday announced a conditional loan commitment with Energy Fuels Inc. to grow critical U.S.-based rare earth mineral production. 

Rare earth minerals are used for essential technologies such as automotive parts, computer technology and medical, defense and security equipment.

China, as the world’s largest reserve-holder, producer, and exporter, holds a near-monopoly on rare earth minerals. 

According to the department, $725 million from its Office for Strategic Capital (OSC) and private investments will fund the construction of a new rare earth separation and metallization facility in coordination with Energy Fuels.

"This partnership,” said the Honorable Emil Michael, under secretary of War for Research and Engineering, “drives an aggressive effort to close vulnerabilities in our industrial base and secure a resilient American supply chain for rare earth elements."

The department's announcement follows a similar statement Tuesday revealing a $500 million investment in Phoenix Tailings, Inc. – also for a rare earth minerals separation and metallization facility, as well as the expansion of existing facilities. 

The investments are expected to “bridge the critical gap between raw extraction and permanent magnet production” and improve the U.S. supply chain for specialty defense and industrial products.

The OSC says it is “deeply focused” on increasing domestic rare earth mineral production, which will foster self-sufficiency, improve economic and national security, and reduce dependence on nations like China for critical elements.

In addition, the OSC has promised over $5 billion in debt financing and assembled $11 billion from both public and private sectors in fiscal 2026 to support the American industrial base.