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Pentagon to invest US$25 million in rare earths startup ReElement
The funding supports a planned commercial facility in Marion, Indiana, aimed at refining rare earths used in magnets for military equipment.
The US Department of Defense said it will invest US$25 million in rare earths startup ReElement Technologies, as part of a broader effort to expand domestic supplies of critical minerals and reduce reliance on China’s rare earth supply chain, according to SCMP Economy. ReElement plans to use a novel processing technology to refine rare earths and other critical minerals at a planned commercial facility in Marion, Indiana. The rare earths are expected to be used in magnets found in a range of military equipment, including fighter jets, missiles, and submarines. The report said it was not immediately clear whether the US$25 million investment will be structured as a grant, a loan, or another type of funding. Representatives for the Pentagon and ReElement were not available right away for comment. China currently dominates global rare earths processing and magnet production, a strategic part of the supply chain the US and its allies have been seeking to diversify, the outlet added.