The Department of Defense has allocated $5.1 million to Rare Resource Recycling Inc. (REEcycle) through Title III of the Defense Production Act. The funding is intended to restart a demonstration facility and further develop a commercial facility that aims to produce 50 tons of rare earth oxides annually. These elements are essential for neodymium iron boron magnets, which play a critical role in various defense applications.
Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, emphasized the importance of this initiative: "A resilient mine-to-magnet supply chain will require diverse sources for rare earth elements." She noted that REEcycle's capabilities could help reduce U.S. dependency on foreign sources by maximizing material recovery from electronic waste.
REEcycle uses proprietary processes to recover over 98% of crucial elements such as neodymium, praseodymium, dysprosium, and terbium. These elements are vital for NdFeB magnets used in national defense systems. Following the demonstration plant's restart, REEcycle plans to establish itself as a merchant supplier in the magnet manufacturing industry.
Mr. Anthony Di Stasio, Director of the Manufacturing Capability Expansion and Investment Prioritization directorate, highlighted the significance of this award: "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."
This grant is part of six awards issued by the DPA Purchases Office since fiscal year 2025 began, totaling $295.9 million. The DPA Purchases Office operates under the MCEIP directorate within the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
For additional information on MCEIP, visit: https://www.businessdefense.gov/ibr/mceip/index.html
