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US Invests $150M in Domestic Rare Earth Production

  //stocks-investing.news-articles.net/content/202 .. ests-150m-in-domestic-rare-earth-production.html
  Published in Stocks and Investing on Monday, January 26th 2026 at 12:36 GMT by Washington Examiner
      Locales: UNITED STATES, CHINA

Washington, D.C. - January 26th, 2026 - In a significant move towards bolstering national security and accelerating the clean energy transition, the U.S. Commerce Department announced a $150 million investment today to jumpstart domestic rare earth element (REE) production. The grants, awarded through the Advanced Manufacturing Office as part of the broader "Investing in America" initiative, represent a pivotal step in reducing the United States' dependence on China, the current global dominant force in the rare earth market.

Rare earth elements - a group of 17 metallic elements - aren't particularly "rare" in terms of their overall abundance. However, their geographic distribution is highly concentrated, and extracting and processing them is technically challenging and environmentally complex. These elements are indispensable components in a wide range of modern technologies, most notably in the powerful magnets critical for electric vehicles (EVs), wind turbines, and a multitude of military applications. The current reliance on China for these essential materials presents a strategic vulnerability that the Biden Administration has prioritized addressing.

"Rare earth elements are essential to our national security and clean energy transition," stated Commerce Secretary Gina Raimondo in a formal announcement. "These investments will help bring those supply chains back to America and cut our reliance on China." The initiative reflects a broader trend of 'friend-shoring' and onshoring manufacturing, particularly in sectors deemed crucial for national resilience.

The allocated funding will be distributed across five distinct projects, each tackling a different stage in the REE supply chain, from mining and extraction to processing and refinement. This holistic approach signifies a commitment not just to mining, but to creating a fully integrated domestic REE industry.

Here's a breakdown of the recipients and their planned projects:

• Ascent Resources LLC ($34.8 million): Based in Eagle Pass, Texas, Ascent Resources will establish a large-scale rare earth mineral processing facility. This facility will be a crucial link in the supply chain, taking raw materials and transforming them into usable rare earth compounds.
• Appalachian Rare Earths LLC ($48.3 million): This West Virginia-based company will pioneer a unique approach by extracting rare earth elements from the residual waste - tailings - of existing coal mines in Beechwood. This "urban mining" concept offers a potentially sustainable and cost-effective source of REEs.
• Beyond Metals LLC ($19.8 million): Located in Cherryville, North Carolina, Beyond Metals will focus on the vital and technically demanding process of rare earth separation. This involves isolating individual rare earth elements from mixtures, ensuring the purity required for advanced applications.
• Control Carbon Corp. ($37.3 million): Operating in Weirton, West Virginia, Control Carbon is tackling a novel source: extracting rare earth elements from the dust generated during steel manufacturing. This represents an innovative utilization of industrial byproducts and contributes to circular economy principles.
• MP Materials LLC ($19.8 million): Building upon their existing operations, MP Materials will expand their rare earth magnet production facility in Fort Worth, Texas. Magnets are arguably the most critical end-use for REEs, and this expansion will significantly increase domestic magnet production capacity.

These five projects, totaling $150 million, represent just a fraction of the Advanced Manufacturing Office's broader commitment to reshoring critical industries. The Office has already earmarked over $2.7 billion for similar onshoring manufacturing projects across a range of sectors, underscoring the government's dedication to creating a more secure and resilient U.S. economy.

The success of this initiative hinges not only on the technological advancements demonstrated by these companies, but also on addressing the environmental challenges associated with REE mining and processing. Sustainable and responsible mining practices will be vital for ensuring long-term viability and public acceptance. Furthermore, workforce development and training programs will be crucial to building a skilled workforce capable of supporting this emerging industry. The rare earth renaissance, if successful, promises to strengthen U.S. economic competitiveness, bolster national security, and accelerate the transition towards a cleaner energy future.