Pentagon Takes $65 Million Stake in America’s Rare-Earth Supply Chain

The Pentagon is investing $65 million in Hertha Metals as Washington pushes deeper into critical-minerals processing and the infrastructure needed to rebuild America's rare-earth supply chain.

The US government is putting more money directly behind efforts to rebuild America's critical-minerals supply chain.

Texas-based Hertha Metals has raised approximately $134 million, including a $65 million equity investment from the Department of Defense, as it prepares to build a new facility producing high-purity iron used in rare-earth magnets.

The planned plant is expected to cost roughly $100 million and eventually produce around 10,000 metric tons annually.

Washington moves deeper into critical minerals

Rare-earth permanent magnets are essential components across advanced technology and defense, including aircraft and missile systems.

That has made reducing America's dependence on overseas processing an increasingly important investment theme.

The Hertha deal is particularly notable because the Pentagon isn't simply providing a grant. By taking an equity position, the government is directly backing the development of domestic

processing capacity.

The Department of Energy has separately announced $29.5 million for 17 National Laboratory projects focused on improving domestic mining and critical-minerals technologies.

For investors, the trend is becoming clearer.

US critical-minerals policy is moving beyond encouraging new mines. Capital is increasingly flowing toward the processing, refining and manufacturing infrastructure required to turn raw materials into strategically important products. This could broaden opportunities well beyond traditional mining companies.