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The Defense Department is awarding $4.2 million to Rare Earth Salts to develop and expand the production of terbium, a crucial element for rare earth magnets in many key defense systems, according to an announcement today.
The award, made via the Defense Production Act Investments (DPAI) office, will allow the Beatrice, NE-based company to develop and expand production of terbium oxide from recycled fluorescent light bulbs, according to DOD.
“This award adds a domestic source for one of the most difficult-to-obtain rare earth elements,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in the DOD release. “Rare Earth Salts’ capability will help the United States establish a mine-to-magnet supply chain without reliance on foreign sources of material.”
Terbium, which makes up less than 1% of total rare earth content in most deposits, “adds temperature resiliency to neodymium iron boron magnets” used in key defense systems like aircraft, submarines and missiles, according to the release.
The company will also recover rare earths lanthanum, cerium, europium and yttrium -- which each serve commercial and defense applications.
By aiding in the establishment and expansion of production for these rare earth elements via the Nebraska company, the funding will also support the 2024 National Defense Industrial Strategy’s priority to increase supply chain resilience “by expanding domestic production and sustainment of critical production,” DOD said.
The investment will also help bolster Rare Earth Salts’ unique position as “one of the only terbium oxide producers outside of China,” according to the release.
The funding marks the latest of more than 50 awards granted via the DPAI office since the beginning of fiscal year 2024, totaling more than $518 million, according to the Pentagon.