US Army Critical Minerals Leases Bring Processing Onto Military Bases

Titan Mining

US Army critical minerals leases will place commercial graphite, lithium, boron and rare earth processing facilities directly on military installations, marking a new stage in Washington’s effort to secure strategic materials for defense and industry.

US Army critical minerals leases were conditionally awarded to Empire State Mines, EnergyX, Ioneer USA and REalloys. The four companies will process graphite, lithium, boron and rare earth materials, respectively.

US Army critical minerals leases are strategically significant because this is the first time the Army and Department of Defense have moved to host commercial mineral processing facilities on military property.

Development is scheduled to begin in 2027, with initial operating capacity targeted by or before 2028.

Military Installations Become Critical Minerals Infrastructure

The projects will use the Army’s Enhanced Use Lease structure, allowing private companies to develop facilities on underutilized military land while retaining responsibility for financing, construction and operations.

The companies will pay market-based rent and cover the full cost of designing, building, operating, securing and eventually decommissioning their facilities.

This structure allows the government to support strategic industrial capacity without directly financing all plant construction costs.

For the Army, hosting processing facilities on military installations could also improve supply-chain security and strengthen links between critical mineral producers and defense customers.

The selected materials are central to multiple strategic industries. Graphite is critical for batteries, lithium supports energy storage, boron is used across specialty materials and nuclear applications, while rare earths are essential for permanent magnets and defense electronics.

The model could therefore help accelerate processing capacity in areas where the US remains dependent on imported material.

Public-Private Model Could Accelerate Domestic Processing

The awards are part of the Army’s Strategic Capital Initiatives, which use partnerships with private industry to speed modernization and strengthen domestic industrial capability.

The approach differs from traditional grants or loans. Instead of providing only capital, the government is using federal land and long-term lease certainty as industrial policy tools.

That can reduce some project development barriers while giving companies access to secure sites with existing infrastructure.

Formal lease agreements are still being negotiated, meaning the projects must move through final commercial and technical stages before construction starts.

If successful, the model could be replicated across other strategic materials and defense-related manufacturing sectors.

For US critical minerals policy, the significance lies in moving processing closer to the defense industrial base and treating refining capacity as strategic infrastructure rather than a purely commercial activity.

The Metalnomist Commentary

The US is turning military property into part of its critical minerals strategy. By combining secure sites with private capital, the Army is creating a new pathway to build processing capacity without relying only on grants and subsidies.