The U.S. Army will allow the construction of critical mineral processing facilities on military bases as part of a strategy to reduce dependence on imports, primarily from China. Four companies have already reached corresponding agreements, Reuters reports, citing informed sources, writes UNN.
Details
According to the agency, agreements with the Pentagon were concluded by REalloys Inc., Titan Mining Corp., ioneer Ltd., and Energy Exploration Technologies. The new facilities will process rare earth elements, graphite, lithium, and boron.
Increasing domestic production of critical minerals is one of the priorities of U.S. President Donald Trump's administration. The White House has previously used government loans and investments to support the industry, but placing production on military sites will be the first such decision.
These minerals are used in the production of electronics, electric vehicles, batteries, and defense technologies.
Where the new facilities will be built
According to Reuters sources, REalloys will build a rare earth element separation plant at the Tooele Army Depot in Utah, and the resulting products will be stored for the needs of the U.S. Army.
Titan Mining will open two graphite purification complexes at military sites in Arkansas and Alabama. Energy Exploration Technologies will be responsible for the lithium plant, and Australia's ioneer for the boron processing facility.
Response to China's actions
The initiative is being implemented amid escalating competition between the U.S. and China for control over the critical minerals market. Last week, Beijing imposed export restrictions on U.S. companies MP Materials and USA Rare Earth, while G7 countries announced their intention to reduce dependence on Chinese supplies.
In March of last year, Donald Trump signed an executive order to use emergency powers to develop the extraction and processing of critical minerals in the U.S.