# DoD Invests $65 Million in Hertha Metals

The Department of Defense is investing $65 million in Hertha Metals as part of a $134 million Series A financing round to support construction of a U.S. facility that will produce high-purity iron, a material used in most rare-earth magnets. The investment is being made through the Industrial Base Analysis and Sustainment program in partnership with the Economic Defense Unit, directing federal capital toward domestic critical-material production. For procurement professionals, this signals support for expanding the defense industrial base, but the announcement does not describe a contract solicitation or an open procurement opportunity.

- The funding supports facility construction and domestic high-purity iron production, creating potential downstream opportunities for construction, equipment, materials, and supply-chain firms as the project advances.
- Suppliers serving rare-earth magnet and critical-material supply chains can assess whether their capabilities align with the facility’s development and production needs; no specific solicitations or supplier requirements are identified in the signal.
- The DoD investment indicates federal interest in strengthening domestic sources of materials used in defense-relevant supply chains, which may inform contractors’ industrial-base and sourcing strategies.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding, Physical Infrastructure
**Published:** September 29, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- Industrial Base Analysis and Sustainment program (IBAS)
- Economic Defense Unit

### Vendors
- Hertha Metals (equity investment recipient)

### Sources
- [DoD Takes Equity Stake In Steel Firm As Part Of Funding Raise - Defense Daily](https://www.defensedaily.com/dod-takes-equity-stake-in-steel-firm-as-part-of-funding-raise/business-financial) - Defense Daily