The Department of War (DOW) announced today a September 3, 2025, two-year, $2 million investment in ReElement Technologies Corporation (RTC) of Fishers, Indiana to address the challenges of sourcing allied raw material and increasing domestic critical mineral separation and purification capabilities, which will help establish a reliable industrial base of rare earth minerals. This announcement was delayed due to the government shutdown. This effort, funded through the Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP))'s Industrial Base Analysis and Sustainment (IBAS) Program, supports Secretary of War priorities in critical minerals research and development by helping to establish a fully allied and domestic rare earth purification supply chain.
"By processing diverse feedstocks — including ores, recycled magnets, and manufacturing waste — at its scalable Marion, Indiana facility, RTC supports the Department's 2027 mine-to-magnet goal and helps reduce our reliance on Chinese-dominated supply chains," said Assistant Secretary of War for Industrial Base Policy Michael Cadenazzi. "This cost-effective approach strengthens domestic production capacity, enhances national security, and meets the growing REE demand in defense, electric vehicles, and renewable energy applications."
ReElement Technologies' innovative rare earth element (REE) separation process, utilizing patented and proprietary refining chromatography methods, offers a transformative solution to bolster the U.S. industrial base supply chain for REEs, aligning with presidential executive orders aimed at securing critical mineral independence. ReElement's chromatography method consistently achieves ultra-high purity (99.5+ percent) oxides like neodymium, dysprosium, and terbium, which are essential for metallization and magnet production.
Key REEs - neodymium, praseodymium, dysprosium, and terbium - are used in advanced magnets that are critical components in both defense and commercial applications. REEs are used in aircraft, nuclear-powered submarines, missiles, electric vehicles, autonomous systems, and satellites. This project will refine REEs with high purity and environmental efficiency, strengthening the domestic industrial base by reducing reliance on foreign processing.
Since the IBAS Program's inception in 2014, the Innovation Capability and Modernization (ICAM) Office has invested over $2.6 billion across 207 projects to restore domestic manufacturing capacity and capability. ICAM is part of OASW(IBP)'s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Directorate within the Office of the Deputy Assistant Secretary of War for Industrial Base Resilience.
For more information on MCEIP, please visit: https://www.businessdefense.gov/ibr/mceip/index.html
About the Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP))
The OASW(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the warfighter, now and in the future. OASW(IBP)'s Innovation Capability and Modernization Office, which executes the IBAS Program, provides DOW with key capabilities to achieve the strategic aims of Department priorities and Presidential Executive Orders. These call for a strong, resilient, responsive, and healthy national industrial base that can respond at-will to national security requirements.