The US Army has conditionally granted long-term leases to four companies to build and operate critical minerals processing plants on domestic military installations.
REalloys, Empire State Mines, a wholly owned subsidiary of Titan Mining, Ioneer USA Corporation and EnergyX will respectively handle rare earth elements, graphite, boron and lithium processing.
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The targeted minerals each have direct defence applications.
Boron carbide is used in armour and propellants, while dysprosium and terbium feature in magnets for guided munitions and radar systems.
Graphite serves as battery anode material in unmanned systems and tactical vehicles, and lithium compounds are required for next-generation military power systems
Each company will design, finance, construct and run its own facility, bearing all associated costs including security and eventual decommissioning.
The plants are to be sited at Anniston Army Depot and Pine Bluff Arsenal in Alabama and Arkansas, Red River Army Depot in Texas, and Tooele Army Depot in Utah.
Structured as Enhanced Use Leases (EULs), the agreements allow the Army to lease underutilised land to private partners without transferring ownership.
Rather than paying cash rent, lessees are required to fund infrastructure improvements at their host installations and secure a decommissioning bond before work begins.
The initiative sits within the Army’s strategic capital initiatives programme.
It follows earlier EUL conditional awards, including a $1.3bn munitions facility with Hanwha Defense USA at Pine Bluff Arsenal and data centre agreements with Carlyle at Fort Bliss and CyrusOne at Dugway Proving Ground.
Eligibility was limited to entities incorporated under US law with majority domestic ownership.
Development is expected to begin as early as 2027, with initial operating capability targeted for 2028.
Jeff Waksman, principal deputy assistant secretary of the Army for Installations, Energy and Environment, said: “The ability to process critical minerals on US soil is a national-defence priority required for munitions, missiles, sensors, batteries, and the platforms our Soldiers depend on.”
“Leveraging our legal authorities and land, the US Army is able to help nurture a critical minerals industrial base which equips and sustains America’s Soldiers without putting any taxpayer dollars at risk,” he added.
