Federal News
DoD Invests in Domestic Rare Earths Processing
March 16, 2026
The Department of Defense is actively reducing its reliance on China for rare earth minerals critical to defense manufacturing by investing over $1 billion in domestic refining and processing capabilities. This effort includes partnerships with international allies such as Australia and support for companies like Almonty Industries completing processing plants. These initiatives aim to secure supply chains, mitigate strategic vulnerabilities, and enhance the resilience of defense industrial base materials.
- Why this matters: Procurement professionals should anticipate increased contracting opportunities related to rare earth mineral processing and supply chain development within the U.S. and allied countries.
- The DoD's focus on domestic and allied partnerships signals a shift toward sourcing critical materials from secure, diversified locations.
- Companies involved in mining, processing, and refining rare earth elements may find new business prospects through DoD and allied government contracts.
- Organizations should evaluate their supply chain risks and consider aligning with government initiatives to support strategic mineral independence.
Weโre in a global competition for these minerals, for these capabilities.
— Mike Cadenazzi, Assistant Defense Secretary for Industrial Base Policy
Agencies
Department of Defense, White House, Congress, Australian Government
Vendors
Almonty Industries
Locations
Sources
- How the Pentagon is working to wriggle out of Chinaโs rare-earths grip - Defense One · Defense One · Mar 16