Phoenix Tailings, U.S mining firm, opens rare earth processing facility in bid to compete with China

U.S. mining company Phoenix Tailings has opened a rare-earth metals processing facility that does not rely on Chinese materials, aiming to establish a domestic foothold for an industry dominated by Beijing.

The new facility opened this week in Exeter, New Hampshire, and will produce about 200 tons of light and heavy rare earth metals annually, Phoenix Tailings stated in a press release. The facility has the capacity to scale up production to more than 1,000 tons per year.

Rare earth metals are 17 minerals used in the production of most high-end electronics and applications. The metals themselves are not rare, but the process of finding, separating and purifying them is expensive and complex.

Phoenix Tailings’ new Exeter facility could produce enough refined rare earth metals to supply the entire U.S. defense industrial base, giving it a leg up in its bid to challenge China’s dominance in the industry.

“We are opening this facility at a critical point for the United States. For decades, China has dominated the global rare earth supply chain, which places the autonomy of the United States at risk,” said Nick Myers, co-founder and CEO of Phoenix Tailings. “By focusing on the challenge of metallization, our newest facility unlocks the rest of the supply chain in the United States and protects our nation’s freedom.”

China has a near-monopoly on rare earth processing and refining due to a multi-decade investment in infrastructure and research. Beijing controls more than 90% of the world’s rare earth processing infrastructure, giving it near total control over the pricing of materials essential for the production of tech gadgets and next-generation missiles.

Phoenix Tailings is one of the few companies looking to bring rare earth processing to the U.S. The company exploits the leftover waste materials from mining operations, or tailings, and finds and processes rare earth minerals found inside.

“Every rare earth mine, recycler, and magnet company needs metallization in the supply chain — but the United States has lacked reliable capacity for decades. This facility brings that capability to market, reliably supplying America and her allies. This development also advances our company towards our ultimate vision of serving the full value chain from tailings to metal,” Mr. Myers said in a release.

It will likely take years for the U.S. to catch up to China’s rare earth processing dominance.

However, recent moves by the Trump administration signal that U.S. leadership and the defense industrial base are aware of the need for more domestic infrastructure.

President Trump has moved to acquire a U.S. government financial stake in Intel, a tech company that relies on rare earths for its hardware, and has struck a deal with Kyiv that creates an investment partnership to exploit Ukraine’s rare earth metals.