The Department of Defense announced today a $5.1 million award via Title III of the Defense Production Act (DPA) to Rare Resource Recycling Inc. (REEcycle). The project aims to restart an existing demonstration facility and advance commissioning of a commercial facility with an estimated annual production of 50 tons of rare earth oxides. REEcycle targets the recovery of four elements critical to neodymium iron boron (NdFeB) magnets, which are used in numerous defense applications, including electric motors on major air platforms, missiles, submarines, and unpiloted vehicles. This effort supports the 2024 National Defense Industrial Strategy's objective to expand support for domestic production of critical minerals by increasing supply chain resilience.
"A resilient mine-to-magnet supply chain will require diverse sources for rare earth elements," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "REEcycle's capabilities will help the United States become less dependent on foreign sources by extracting full value from material that would otherwise end up in landfills."
REEcycle's proprietary processes recover more than 98% of the elements neodymium, praseodymium, dysprosium, and terbium, the rare earths that impart essential properties in the NdFeB magnets used in critical national defense systems. Following the restart of its demonstration plant, REEcycle intends to commission a commercial plant and establish itself as a merchant supplier to companies engaged in downstream metallization and magnet manufacturing.
"By enabling REEcycle to recover critical materials from electronic waste, this award will support the DoD's work to expand the supply of rare earths needed for the production of defense articles," added Mr. Anthony Di Stasio, Director of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate. "These awards are an essential tool for mitigating risks in the defense industrial base and reducing overreliance on foreign supplies."
This is one of six awards made by the DPA Purchases Office totaling $295.9 million since the beginning of fiscal year 2025. The DPA Purchases Office is overseen by the MCEIP directorate in the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
