Pentagon Funds Project to Extract Rare Earths from E-Waste

The U.S. Department of Defense has awarded $5.1 million to Rare Resource Recycling Inc. to enhance the recovery of critical rare earth elements from recycled electronic waste, strengthening the domestic supply chain for defense applications.

The contract, awarded under Title III of the Defense Production Act, will support the restart of a demonstration facility and the development of a commercial plant projected to produce 50 tons of rare earth oxides annually.

REEcycle specializes in extracting critical elements—neodymium, praseodymium, dysprosium, and terbium—from recycled electronic waste. These elements are vital for neodymium iron boron (NdFeB) magnets, used extensively in electric motors for military platforms, missiles, submarines, and unpiloted vehicles.

Assistant Secretary of Defense for Industrial Base Policy Dr. Laura Taylor-Kale emphasized the initiative's role in reducing reliance on foreign sources, aligning with the 2024 National Defense Industrial Strategy's goal to strengthen domestic production of critical minerals.

The company's patented processes recover over 98% of rare earth materials, preventing valuable resources from ending up in landfills. After completing the demonstration facility, REEcycle plans to commission its commercial plant, becoming a supplier to industries producing downstream metallization and magnets.

"This effort will expand the supply of rare earths required for defense production, supporting DoD’s broader objective of mitigating industrial base risks and enhancing supply chain resilience," stated Anthony Di Stasio, Director of the Manufacturing Capability Expansion and Investment Prioritization directorate.

This award is part of $295.9 million allocated by the DPA Purchases Office in fiscal year 2025, overseen by the MCEIP directorate within the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.