The U.S. Army will allow private companies to build and operate critical mineral processing plants on military bases under a new initiative aimed at strengthening domestic supply chains and reducing U.S. reliance on China for materials essential to national security, semiconductors, electric vehicles and advanced weapons systems.
The Army has conditionally selected four companies—REalloys Inc., Titan Mining Corp., ioneer Ltd. and Energy Exploration Technologies (EnergyX)—to develop processing facilities under long-term leases at military installations across the United States.
The projects are expected to attract nearly $2 billion in private investment and focus on refining rare earth elements, graphite, lithium and boron, minerals that the U.S. considers critical for both civilian manufacturing and defense applications.
According to the U.S. Geological Survey, the United States remains heavily dependent on imports for many of these minerals. China accounts for roughly 90% of global rare earth processing capacity, around 95% of battery-grade graphite processing, and is a dominant supplier of several refined minerals used in batteries and electronics.
“This initiative strengthens our industrial base while ensuring the Army has access to critical materials needed to support national defense,” the Army said while announcing the conditional lease awards.
Military Bases Become Strategic Industrial Hubs
Instead of collecting traditional lease payments, the Army will receive a negotiated share of processed mineral output, ensuring direct access to strategic materials for defense manufacturing.
The selected projects include a graphite processing facility proposed by Titan Mining at an Army installation in Alabama or Arkansas, a lithium refinery by EnergyX at the Red River Army Depot in Texas, and rare earth and boron processing facilities by REalloys and ioneer at military sites in Utah.
Army officials said using existing military installations offers ready access to transportation infrastructure, utilities, security and industrial land, helping companies shorten development timelines while reducing construction costs. Commercial production is expected to begin as early as 2028, subject to environmental approvals and permitting.
Reducing a Strategic Vulnerability
The initiative comes as Washington accelerates efforts to secure domestic supplies of critical minerals after years of concern over China’s dominance of global refining capacity.
Although the United States possesses sizeable mineral resources, it has relatively limited refining infrastructure, forcing manufacturers to rely heavily on overseas processing before materials can be used in batteries, aircraft, missiles, electronics and renewable energy systems.
The Pentagon has increasingly classified critical minerals as a national security priority, warning that disruptions to global supply chains could affect production of fighter aircraft, precision-guided weapons, submarines and next-generation military technologies.
The Army’s plan builds on a series of executive actions aimed at expanding domestic mining, refining and recycling capacity. Officials say partnering with private industry on military bases could accelerate new processing projects that might otherwise take years to develop, while strengthening supply resilience for both defense and commercial industries.