Phoenix Tailings announced a strategic initiative with the U.S. Department of War’s Office of Strategic Capital (OSC) aimed at rebuilding the domestic rare earth industrial base through an approximately $1 billion financing initiative.
As part of the effort, the Office of Strategic Capital has conditionally committed $500 million in long-term debt financing for the construction of Phoenix Tailings’ Freedom Facility, a fully integrated rare earth separation and metallization platform designed to strengthen the U.S. supply chain for critical minerals.
The Burlington, Massachusetts-based company said the facility will produce both light and heavy rare earth metals from a variety of feedstocks, including concentrates, recycled materials, and secondary sources. Initial operations are targeted for 2028.
Rare earth processing represents one of the most constrained segments of the critical minerals supply chain. U.S. defense systems, advanced manufacturing, energy infrastructure, and consumer technologies currently rely heavily on materials refined overseas. The Freedom Facility is intended to provide large-scale domestic separation and metallization capabilities serving mines, recyclers, manufacturers, and government entities.
Phoenix Tailings said the facility will utilize domestically controlled technology and intellectual property while leveraging advanced chemistry, industrial hardware, and digital infrastructure to create cleaner and more efficient operations than conventional refining methods.
The company believes the project will support the development of a resilient Western rare earth ecosystem by creating a midstream processing hub capable of purchasing output from mines and recyclers and supplying materials to downstream manufacturers.
The conditional loan commitment remains subject to customary due diligence requirements and additional financial, legal, and technical milestones before reaching financial close.
Founded in Massachusetts, Phoenix Tailings is developing a platform for the production of rare earths and critical minerals, combining chemistry, industrial hardware, and digital infrastructure to support domestic refining and metal production capabilities.
The Office of Strategic Capital provides long-term financing designed to expand production capabilities and strengthen U.S. national security through investments in critical technologies and their supply chains.
KEY QUOTES:
“Supporting domestic processing for critical minerals and rare earths is a key focus for OSC, and the rare earth midstream processing capabilities that Phoenix Tailings represents are key shortage areas that need to be rapidly addressed. We are pleased to support Phoenix Tailings in building the company’s Freedom Facility, which will represent an important step in strengthening the full mine-to-magnet supply chain in the United States.”
David A. Lorch, Director of the Office of Strategic Capital and Senior Advisor to Deputy Secretary of War Steve Feinberg
“By creating a midstream facility like this, we are empowering virtually every part of the market and rebuilding the rare earth sector as a truly collaborative industry. We will ensure end customers get access to the rare earth metals they urgently need, while helping mines and recyclers get up and running by purchasing their output, which would otherwise have to move through other nations. The Freedom Facility is designed to serve as the backbone of a resilient Western rare earth supply chain.”
Anthony Balladon, Co-Founder and Chief Commercial Officer of Phoenix Tailings
“We founded Phoenix Tailings in our backyard because we believed there was a better way to produce rare earths and critical metals. This strategic investment from the Office of Strategic Capital will allow us to deploy the infrastructure America has lacked for decades while proving that advanced technology can deliver a safer, cleaner, and more competitive rare earth industry.”
Dr. Tomas Villalón Jr., Co-Founder and Chief Technology Officer of Phoenix Tailings
“Every team member at Phoenix Tailings understands the responsibility entrusted to us. We know what is at stake, and we know that failure is not an option. This mission is bigger than any one company. It is about strengthening American industry, securing critical supply chains, and ensuring our nation has the resources it needs to thrive. To the American people: you have our word that we will work tirelessly to achieve that mission, and we will not let you down.”
Nicholas Myers, Co-Founder and Chief Executive Officer of Phoenix Tailings
