US backs rare earth separation project with $19.3M to reduce China reliance

The U.S. Department of Energy selected USA Rare Earth for up to $19.3 million in potential funding.

The money would support a pilot-scale rare earth separation facility as part of efforts to rebuild U.S. processing capacity.

The project aims to cut reliance on Chinese refining and strengthen supply chains for defense, EV, and advanced manufacturing.

It could help expand domestic production of heavy rare earths and support future magnet manufacturing.