The United States resumes funding for two rare earth processing projects

SMM: the US Department of Defense has resumed funding for two rare earth mineral processing projects. The assessment believes that the two projects that can provide rare earth products for the military are in the best interests of the US government.

On April 22nd, the Pentagon announced funding for rare earth separation projects in Texas and California, respectively, for Australia's Linus (Lynas) and privately held company (MP Materials). But on April 29th, the Pentagon announced that it would shelve its sponsorship for the time being, pending further research.

At the end of April, there were reports that Chinese companies owned a small stake in MP, which caused concern in the US government. MP owns the only rare earth mine in the United States, and its majority shareholder is a hedge fund in Chicago.

Several US senators have written to the Pentagon to fund only domestic rare earth projects.

According to a document dated 10 July, after a third-party legal and procedural evaluation, the procedure was found to be fair, so funding for Lynas and MP will be restored.

Neither Pentagon officials nor MP responded to requests for comment. Lynas declined to comment.

Although funds allocated by the Pentagon are generally used for the construction of mineral processing deposits, the US government did not disclose the amount of funding for the projects of the two companies.

Lynas has said it can work with (Blue Line), a private blue line company, to advance its project in Texas without U. S. government funding.

In addition, the Pentagon is also reviewing other applications for funding rare earth projects. Applicants hope to have results in the next few months.

Last week, MP announced that it would go public at the end of the year.

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