Mentioned:
The Pentagon is putting up a half a billion dollars in debt financing for a private company in America. And together they’re aiming to accelerate build out of a fully domestic rare earth supply chain.
What’s happening:
- Rare earth metal producer Phoenix Tailings has been awarded a conditional funding commitment for a $500M USD loan from The Pentagon’s Office of Strategic Capital
Why it matters:
- This is one of the single largest loan commitments that The Pentagon’s Office of Strategic Capital has ever made to a private company focused on rare earth processing
Going deeper:
- Phoenix Tailings has publicly stated that the $500M USD loan from The Pentagon’s Office of Strategic Capital will anchor a $1B USD financing commitment with private investors to accelerate the build out of their Freedom Facility for rare earth processing
- Phoenix Tailings currently operates a rare earth metallization plant located in Exeter, New Hampshire which is producing roughly 200 tonnes of light and heavy rare earth metals annually
The intrigue:
- Former Chief of Staff to the United States Secretary of Defense Joe Kasper previously made waves when he joined the advisory board of REalloys (NASDAQ: ALOY) to accelerate the build out of their metallization facility and rare earth processing operations in North America
