US Army Pledges $77M for Rare-Earth Plant to Secure Lockheed Martin’s Magnet Supply
LMT•The U.S. Army committed $77 million to fund the construction of the first U.S. rare-earth separation plant, projected to produce 10,000 metric tons of mixed rare-earth oxides annually starting in 2027. This facility will cut China’s processing share by 30 points to 50%, securing NdFeB magnet supplies for Lockheed Martin’s systems.
1. Army Investment in Rare-Earth Plant
The U.S. Army announced a $77 million award to develop the nation’s first fully domestic rare-earth separation plant. It will convert ore from Mountain Pass into mixed rare-earth oxides for manufacturing NdFeB magnets essential to advanced defense hardware.
2. Production Capacity and Timeline
Situated in the southwestern U.S., the facility is slated to begin operations in 2027, with a production target of 10,000 metric tons of mixed oxides per year. This output will elevate U.S. processing capacity from zero to a level that cuts China’s market share by 30 points to 50%.
3. Implications for Lockheed Martin
Lockheed Martin’s missiles, radar systems and fighter jet components rely on neodymium-iron-boron magnets made from these oxides. Securing a domestic supply is projected to reduce material costs by up to 15% and mitigate delays caused by export restrictions.
4. Broader Defense Sector Impact
Beyond Lockheed, the plant will support other defense contractors and high-tech manufacturers, fostering a more resilient supply chain. This move marks a strategic shift toward onshore production of critical materials for U.S. national security.
