U.S. companies ramp up production of critical minerals to reduce reliance on China

In the United States, a small refinery in Exeter, New Hampshire, is extracting critical minerals necessary for U.S. weapons systems, including those used in military operations against Iran. The Trump administration is promoting domestic production to reduce reliance on China, which dominates the processing of these materials. Phoenix Tailings, the company operating the refinery, plans to increase its production capacity significantly in the coming years to meet the growing demand from the defense sector.

U.S. companies ramp up production of critical minerals to reduce reliance on China
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military conflicts Published Aug 3, 2026

Topic overview

In brief

  • A small refinery in New Hampshire is extracting critical minerals from mining waste for U.S. weapons systems.
  • The U.S. government is pushing for increased domestic production to reduce reliance on China.
  • Efforts to ramp up production are crucial for national security amid ongoing military conflicts.

Summary

In the United States, a small refinery located in Exeter, New Hampshire, is playing a crucial role in producing critical minerals essential for U.S. weapons systems, including those used in military operations against Iran. This facility, operated by Phoenix Tailings, utilizes innovative methods to extract valuable minerals from mining waste, aiming to reduce the country's dependence on China, which has a dominant position in the processing of these materials. The urgency for increased domestic production has intensified due to ongoing military engagements and the need to replenish dwindling stockpiles of advanced missile interceptors.

The Trump administration has been actively promoting the expansion of domestic production of critical minerals, implementing stricter regulations that prohibit military contractors from sourcing these materials from China. This initiative is part of a broader strategy to ensure that the United States and its allies can operate independently of Chinese influence in the rare-earth sector. The current geopolitical climate, characterized by trade tensions and military conflicts, has further highlighted the importance of securing a reliable supply chain for these essential resources.

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Updated Aug 3, 2026

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