Story perspectives

Pentagon Approves $1.2B Rare-Earth Loans, Senator Questions Legality

6/19/2026

Summary

Pentagon funds rare-earth

The Defense Department signed a $725 million loan with Energy Fuels to build a rare-earth separation and metallization plant, expanding processing at its White Mesa Mill and repaid in 20 years.
The Pentagon approved a $500 million loan to Phoenix Tailings for a “Freedom Facility” to process rare-earth minerals, opening by 2028.
Sen. Jack Reed has questioned the legality of Pentagon equity deals with MP Materials, targeting the $1.2 billion rare-earth funding.

Summary

Energy Fuels Extracts

Energy Fuels will extract rare earths from monazite, which also contains uranium and thorium, and says it can manage the radioactive by-products.
Analyst David Riley of Wood Mackenzie warns that scaling rare-earth separation and metallization together will be hard because the project depends on many interdependent steps.
Energy Fuels will use part of a Defense loan to acquire Australian Strategic Minerals, metallization specialist, to launch a U.S. metallization operation.

Summary

Energy Fuels Expands

Energy Fuels is developing three sand projects—Vara Mada in Madagascar, Bahia in Brazil, and Donald in Australia, where it may earn a 49% joint-venture interest with Astron Limited.
Energy Fuels, the leading U.S. uranium concentrate producer, hired Goldman Sachs & Co. LLC as financial advisor and Akin Gump Strauss Hauer & Feld LLP as legal counsel for its OSC financing.
Energy Fuels is evaluating medical-isotope recovery from its uranium streams for targeted-alpha-therapy cancer treatments.

History

Historical Context

China labeled rare-earths a protected strategic good in 1990 and later tightened export quotas, driving U.S. efforts for domestic supply. The Pentagon funded MP Materials in 2010 to restart Mountain Pass, and the Defense Department added $725 million and $500 million loans in 2024 to boost separation capacity. China produced about 129,000 t of rare-earth oxides in 2009, highlighting the gap the U.S. seeks to close by 2030.

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Pentagon funds rare-earth

The Defense Department signed a $725 million loan with Energy Fuels to build a rare-earth separation and metallization plant, expanding processing at its White Mesa Mill and repaid in 20 years.
The Pentagon approved a $500 million loan to Phoenix Tailings for a “Freedom Facility” to process rare-earth minerals, opening by 2028.
Sen. Jack Reed has questioned the legality of Pentagon equity deals with MP Materials, targeting the $1.2 billion rare-earth funding.

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