Tooele Army Depot, sitting on 43,000 acres in Utah, will soon be the site of a rare earths processing plant, the Army announced recently. (Courtesy Tooele Army Depot/U.S. Department of War)
The U.S. Army has selected Tooele Army Depot (TAD) in Utah as one of four bases in the U.S. where private companies will build and operate critical minerals processing plants on domestic military installations.
Under the Army's Strategic Capital Initiatives program, the firms will process rare earth elements, graphite, boron and lithium.
REalloys Inc., a Boca Raton, Florida-based critical minerals and manufacturing company, will construct a rare earth separation facility at the TAD and production from the plant will be stockpiled on-site for military use, according to an Army release.
The deals between the Army and the plant owners are structured as enhanced use leases (EULs), which allow the Army to lease underutilized land to private partners without transferring ownership. The program is a first-of-its-kind initiative by the Trump administration to boost domestic production of key materials.
The Army said each of the targeted minerals have direct defense applications and that each of the chosen companies will design, finance, construct and run its own facility. Rather than paying cash rent, lessees are required to fund infrastructure improvements at their host installations and secure a decommissioning bond before work begins.
Development is expected to begin as early as 2027, with initial operating capability targeted for 2028. The new lease awards are the first time the Army has sited commercial mineral processing facilities on American military installations, the Army said.
Previous EUL conditional awards include a $1.3 billion munitions facility built by Hanwha Defense USA at the Pine Bluff Arsenal in Arkansas and data center agreements with global investment firm Carlyle at Fort Bliss, Texas, and Texas-based CyrusOne at Tooele County's Dugway Proving Ground.
Other EUL developments recently announced with the Tooele Army Depot deal include Titan Mining building and operating a graphite purification facility at either Pine Bluff Arsenal or Anniston Army Depot in Alabama. EnergyX and Sydney, Australia-based Ioneer — the only non-U.S. company of the four involved — will develop a lithium facility and a boron plant, respectively.
"The ability to process critical minerals on U.S. soil is a national-defense priority required for munitions, missiles, sensors, batteries and the platforms our soldiers depend on," Jeff Waksman, principal deputy assistant secretary of the Army for installations, energy and environment, said in a statement. "Leveraging our legal authorities and land, the U.S. Army is able to help nurture a critical minerals industrial base which equips and sustains America's soldiers without putting any taxpayer dollars at risk."
The Trump administration is racing to boost production of critical minerals on U.S. soil in an effort to reduce its dependency on imports, especially from China. The minerals are essential to a wide range of applications, including consumer electronics, automobiles and defense technologies.
The plan to build mineral plants on Army bases was anticipated in March 2025 when Trump signed an executive order invoking emergency powers to boost critical minerals production capabilities.
REalloys, the company chosen to build the TAD plant, currently produces alloys at a plant in Ohio and works with the Saskatchewan Research Council in Canada to produce so-called heavy rare earths like terbium and dysprosium — both of which will be refined at TAD. Its new Utah plant will focus on rare earth minerals that are in high demand due to their use in heat-resistant magnets for defense and automobiles.
"REalloys is proud to stand alongside the U.S. Army to reclaim the heavy rare earth supply chain," said REalloys CEO Lipi Sternheim. "This partnership represents a historic step for assuring these materials are domestically sourced and fully compliant for weapon system integration. We look forward to supporting the Army in such an important leadership initiative to enable warfighter readiness and the mission effectiveness of our future fighting force."
REalloys raised $100 million in a private placement of common stock immediately following the Army announcement of the TAD deal.
"This is proving the Secretary of the Army's theory that we can operate in a different way that benefits both the Army and industry — as well as gets the Army the things that it needs critically on a timeline that would have been unthinkable 18 months ago," said David Fitzgerald, deputy undersecretary of the Army. "We are very excited about the effort, and the engagement and support we've gotten from industry."
"This is proving the Secretary of the Army's theory that we can operate in a different way that benefits both the Army and industry — as well as gets the Army the things that it needs critically on a timeline that would have been unthinkable 18 months ago. We are very excited about the effort, and the engagement and support we've gotten from industry."
David Fitzgerald, deputy undersecretary of the Army"The Army remains committed to smart stewardship of its real property and the surrounding communities," the Army's release said. "[Lessees] are required to engage state and local authorities, assess local impact and propose comprehensive mitigation strategies."
The Army said no construction will begin until rigorous environmental and regulatory reviews, including the National Environmental Policy Act, Clean Air and Water acts and all required federal, state and local permits, are fully complete.
The selected sites were chosen to ensure compatibility with the ongoing missions of each host installation. Tooele Army Depot is an Army Joint Munitions Command post and serves as a storage site for war reserve and training ammunition. The depot stores, issues, receives, renovates, modifies, maintains and demilitarizes conventional munitions.
