Key facts
- Phoenix Tailings received a conditional $500 million debt financing commitment from the Pentagon's Office of Strategic Capital.
- The funds will be used to construct a rare earth midstream processing plant in the U.S.
- The project, named 'Freedom Facility', is valued at $1 billion and aims to process mined concentrates and recycled scrap.
- The initiative seeks to decrease U.S. reliance on foreign sources for critical minerals, especially China.
- Operations at the plant are targeted to begin in 2028, subject to due diligence.
Phoenix Tailings, a startup backed by BMW and Sumitomo, has received a conditional commitment for $500 million in long-term debt financing from the Pentagon's Office of Strategic Capital. This funding is earmarked for the construction of the 'Freedom Facility,' a rare earth midstream processing plant in the U.S. The $1 billion project aims to process raw mined concentrates and recycled scrap into critical light and heavy rare earth metals. The initiative is part of a broader effort to reduce U.S. military and commercial dependence on critical minerals refined overseas, particularly in China. The company targets commencing operations in 2028, pending customary due diligence.