Highlights
- US Critical Materials and Idaho National Laboratory collaborate to build a pilot plant.
- The plant will process rare earth and critical minerals from Montana’s Sheep Creek deposit.
- The project aims to reduce US dependence on foreign adversaries, such as China, for essential strategic materials.
- These materials are used in defense and advanced technologies.
- The demonstration-scale facility will process 1-2 tons of ore daily.
- The focus is on developing environmentally sustainable and scalable mineral separation technologies.
In a June 5 press release (opens in a new tab), US Critical Materials (opens in a new tab) Corp. announced a groundbreaking partnership with Idaho National Laboratory (opens in a new tab) (INL) to construct a next-generation rare earth and critical minerals processing facility on INL’s campus. This joint initiative is designed to address what the companies and national security experts have long warned is one of the most urgent threats to U.S. strategic autonomy: dependence on foreign adversaries, particularly China, for the supply of rare earth elements (REEs).
The move follows a March 20, 2025, Executive Order by President Donald J. Trump declaring a National Emergency over U.S. reliance on hostile nations for key materials. The new demonstration-scale plant aims to be an environmentally responsible prototype for domestic refining, and it marks a pivotal moment in the country’s effort to rebuild its rare earths processing capabilities. Rare earths are indispensable to national defense technologies, including missile guidance systems, radar, advanced jet engines, and electronic warfare systems. China currently dominates the global supply chain, from mining to refinement, leaving the United States dangerously exposed to geopolitical disruptions.
The pilot facility will be powered by technical expertise from INL, a globally recognized leader in Advanced Separation Science and Engineering, and the Department of Energy’s primary R&D hub for this field. The plant will focus on high-grade ore sourced from the Sheep Creek deposit in Montana, a site known for its abundance of rare earths such as neodymium, praseodymium, samarium, and heavy rare earths like dysprosium and terbium. Importantly, it also contains high concentrations of gallium, which will be one of the first materials to be processed and is vital for advanced electronics and military communications.
Under a Phase II Cooperative Research and Development Agreement (CRADA), the pilot plant will be capable of processing 1 to 2 tons of ore per day, using a validated bench-scale flow sheet. The primary objective is to demonstrate new separation and refining technologies that are both scalable and environmentally sustainable. This step is expected to lead to intellectual property development and pave the way for commercial-scale domestic production of critical minerals.
Jim Hedrick, (opens in a new tab) president of US Critical Materials (opens in a new tab) and former rare earths commodity specialist for the US Geological Survey, emphasized the significance of this effort: “There is no more pressing national security issue than securing America’s supply of rare earths and critical minerals,” he said. “These materials are the backbone of our military, energy, and technological dominance.” He added that the facility will fast-track the evolution of new refining technologies, helping to break the United States’ dangerous dependency on foreign sources.
This partnership builds upon the progress made during the Phase I CRADA, which commenced in early 2024. That phase confirmed the Sheep Creek site’s exceptional concentrations of rare earths and gallium and laid the foundation for the current pilot facility. The new project also supports the broader strategic goal of ensuring the U.S. has a secure and independent supply chain to support national defense and advanced technology development well into the future.
Meanwhile, the company’s broader strategy for 2025 includes an aggressive push to expand its foothold in the U.S. critical minerals space. According to a corporate outline of its strategic initiatives, US Critical Materials plans to acquire additional mineral-rich properties nationwide. Its team of geologists and industry veterans has already identified several promising targets for acquisition during 2024.
On the technical side, INL has shown sustained interest in furthering metallurgical and processing studies related to Sheep Creek ore. These studies will analyze ore composition and evaluate best practices for refining, including flotation, gravity separation, leaching, and element-specific flowcharts, to optimize recoveries and reduce waste.
The company is also actively investing in public and governmental outreach. It has retained both a high-profile public relations firm and an experienced government relations consultancy. The public-facing campaign will span print, digital, and television media, aiming to raise awareness of the critical need for a domestic supply chain. On the government side, the firm will pursue federal funding opportunities, including those available through the Department of Defense and the Department of Energy.
Financially, US Critical Materials is exploring various funding mechanisms to support its growth. In addition to capital markets activity, the company is in discussions regarding forward offtake contracts—agreements with end-users to purchase materials once production begins. These agreements are especially relevant in today’s tight market, where demand vastly exceeds supply. Several competitors with less advanced projects have already begun securing such deals.
The company also anticipates strategic investment from end users, such as automotive manufacturers, which have increasingly moved upstream in the supply chain to secure access to essential minerals. With geopolitical instability and raw material shortages on the rise, US Critical Materials sees itself as a likely partner—or acquisition target—for entities seeking long-term supply security.
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