Enable breadcrumbs token at /includes/pageheader.html.twig

Pentagon Invests in Domestic Rare Earth Mineral Production

A new contract award promises domestic production of gallium and scandium.

Aughinish Alumina Refinery in Foynes, Ireland, on August 29, 2018. ElementUSA will separate and extract gallium and scandium from mineral-rich bauxite residue, a byproduct of the alumina refining process. Credit: Gabriel Cassan-stock.adobe.com

The Pentagon announced Thursday that it has awarded $29.9 million to ElementUS Minerals LLC (ElementUSA) to develop a demonstration facility in Gramercy, Louisiana, to separate and purify gallium and scandium from existing industrial waste, which supports the current U.S. administration’s goal to increase the production of processed critical minerals.

The Defense Production Act Title III award is a response to the March 20, 2025, Executive Order 14241 - Immediate Measures to Increase American Mineral Production.

According to the press release, ElementUSA is leading the field in “recovering minerals and metals from industrial waste streams to create domestic supply chains of critical minerals necessary for national defense.”

With the construction of the demonstration facility, the company will become one of the first U.S. producers of both gallium and scandium, which are used in the manufacturing process for missile defense platforms, sensors, fighter aircraft and hypersonic weapons.

Gallium is a key component in semiconductors and chips for high-power and high-frequency technologies. Scandium is used to make strong aluminum alloys for weapons and other military equipment.

"Gallium and scandium are critical minerals essential to a wide range of defense manufacturing industries and equipment," said Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi. "Developing domestic production of both is a DOW [Department of War] priority."

According to the U.S. Geological Survey, scandium hasn’t been produced domestically in the United States since 1969, but the United States produced approximately $260 million worth of rare earth minerals in 2024. Historically, the United States has imported rare earths from China, but the government is pushing for domestic production.

ElementUSA will be able to clean up waste product while creating a domestic supply chain of critical minerals by separating and extracting the minerals from mineral-rich bauxite residue, a byproduct of the alumina refining process, the release stated.

"By enabling ElementUSA to recover gallium and scandium from processing waste, this award will support the DOW's work to expand the supply of critical minerals needed for numerous defense components and platforms," said Jeffrey Frankston, acting deputy assistant secretary of war for industrial base resilience, which oversees the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate. "Such awards are essential for reconstituting domestic capabilities, diversifying supply chains, reducing dependence on foreign sources and enhancing national security."

According to the release, the award uses funds from the Additional Ukraine Supplemental Appropriations Act of 2022, and this is one of 18 awards made by the Defense Production Act Purchases Office, totaling $887 million in fiscal year 2025.