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US Mines Waste for Defense Minerals
3 Aug
Summary
- New Hampshire firm uses electrolysis to extract minerals from mine waste.
- Pentagon invests USD 500 million to expand mineral processing capacity.
- US aims to reduce dependence on China for critical defense materials.

In Exeter, New Hampshire, a company is pioneering the extraction of critical minerals from mine waste using electrolysis. This endeavor, supported by a USD 500 million Pentagon loan, aims to establish a new factory to significantly expand the nation's separation and metallization capacity. The urgency for these materials is heightened by current global conflicts, as critical minerals are vital components in advanced U.S. weaponry.
The "Freedom facility," as it's dubbed, plans to produce metals like neodymium and praseodymium from tailings and recycled materials. This initiative is a strategic move to lessen the United States' and its allies' reliance on China for rare-earth elements, a vulnerability exposed by geopolitical tensions. Meanwhile, other companies are also seeking diversified supply sources, with one U.S. magnet maker now sourcing materials from a recently restarted French facility.
The U.S. defense sector's reliance on specific critical minerals, such as samarium, underscores the importance of domestic production. Despite efforts to ramp up U.S. mining and processing, new mines are years away, making waste extraction a vital interim solution. Former President Trump's July 20 executive order further pressures defense contractors to prioritize domestic or allied sourcing, complicating waivers for non-domestic materials.