Followers | 20 |
Posts | 1245 |
Boards Moderated | 0 |
Alias Born | 12/06/2020 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Saturday, March 20, 2021 1:37:59 PM
Andrew Eversden
February 1
66
The U.S. is looking to increase domestic rare earth metal production. (Rodger Bosch/AFP via Getty Images)
WASHINGTON — The U.S. Defense Department awarded a $30.4 million contract to boost domestic processing of light rare earth elements as part of an effort to become less dependent on China for critical technologies, the department announced Monday,
The Pentagon awarded the funds to Lynas Rare Earths Limited, the world’s largest rare earth element mining and processing company outside of China. The firm will use the funds to open a processing facility in Hondo, Texas, through its U.S. subsidiary, Lynas USA.
The award is part of a broader push by the department to secure its rare earth supply chain, which is threatened by China’s dominance in the industry, and move more production to the United States. China is the top producer of rare earth metals, which are a critical piece of defense systems like satellites or the F-35 fighter jet.
“The significance of the award is they [the Defense Department] are continuing to march forward and put the pieces of the puzzle back in place so the U.S. will have access to rare earth [elements] to meet national security needs,” said Jeffery Green, president of J.A. Green & Company, a government relations firm that works with the defense industry.
If the project is successful, Lynas would be the producer of about a quarter of the world’s rare earth oxides, or processed rare earth elements. Increasing domestic production of the metals is critical because they are so widespread.
“You’ll find these things in almost every major defense system,” Green told C4ISRNET.
To counter Chinese dominance, the Pentagon in recent years took steps to bring domestic rare earth production back to the United States. According to Reuters, in April last year the department funded the construction of a Lynas heavy rare earth metals facility in Texas, which it built through a joint venture with Texas-based Blue Line Corporation.
In November 2020, the Pentagon announced three Defense Production Act awards with rare earth element producers worth more than $12.5 million in total. The Defense Department’s actions on rare earth elements stems from Executive Order 13817, a Trump administration document directing the government to adopt a strategy for critical minerals.
PickleJar Unveils Latest Venue Managed Services Innovations in Upcoming Webinar • PKLE • Aug 23, 2024 1:11 PM
Element79 Gold Corp Provides Update on Nevada Portfolio • ELMGF • Aug 23, 2024 8:00 AM
Maybacks Adds Award Winning Show to Its Lineup Discusses Maybacks Opportunity • AHRO • Aug 22, 2024 11:30 AM
North Bay Resources Announces First Gold Concentrate at Mt. Vernon Gold Mine, Assays 12 oz/ton Gold, 17.5 oz/ton Platinum, and 8 oz./ton Silver, Sierra County, California • NBRI • Aug 22, 2024 10:28 AM
All Things Mobile Analytic, Inc. Reports Major Growth with Over $11 Million in Revenue • ATMH • Aug 22, 2024 7:19 AM
Unitronix Announces Strategic Entry into Cryptocurrency Space • UTRX • Aug 21, 2024 10:00 AM