Source: Fortune.com
Summary
Phoenix Tailings, a company based in Woburn, Massachusetts, is working to extract critical minerals from mine waste and recycled materials to help the US break its dependence on China for these materials. The company plans to build a new facility with a $500 million loan from the Pentagon to expand its separation and metallization capacity. The US defense sector relies heavily on these minerals, which are used in weapons systems such as Tomahawk cruise missiles and F-35 fighter jets. The company’s goal is to produce 120 tons of critical minerals per year, but it will take 14 to 18 months to build the new factory.
Our Reading
The numbers tell one story. Phoenix Tailings is racing against time to scale up its production of critical minerals, with the Pentagon imposing stricter rules on sourcing these materials from China. The company’s plan to build a new facility with a $500 million loan is a significant step, but it’s unclear if it can meet the growing demand in time. The US defense sector’s reliance on these minerals is a ticking clock, with the war in the Middle East drawing down munitions and China’s near-monopoly on processing capacities. The Pentagon’s deadline for defense contractors to stop sourcing critical materials from China is looming, and the consequences of missing it are unclear.
Original observation: The US is trying to rebuild its domestic supply chain of critical minerals, but it’s a game of catch-up.
Author: Evan Null
