The Insider

By Vanessa Montalbano
January 23, 2025 at 6:32 PM

Boeing's Defense, Space & Security division is again anticipating negative charges in the billions as the company continues to reel from last year's International Association of Machinists work stoppage and persistent developmental delays on its firm, fixed-price programs.

"Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," Kelly Ortberg, Boeing president and chief executive officer, said in a statement today announcing the company’s pre-tax, fourth-quarter results.

Boeing’s defense division is expected to recognize a greater loss than its commercial business, with a total $1.7 billion in the red on the troubled KC-46A Pegasus tankers, T-7A Red Hawk training jets, VC-25B Air Force One planes, MQ-25 Stingray uncrewed aircraft and Starliner Commercial Crew spacecraft. The charge brings Boeing defense business to an operating margin of 41.9% in the fourth quarter, according to the company.

The Pegasus alone hemorrhaged $800 million due to “higher estimated manufacturing costs, including impacts of the IAM work stoppage and agreement,” Boeing noted in a news release. In July, that aircraft tacked on another category 1 deficiency to its mix of significant or possibly deadly issues -- bringing the total to seven.

The T-7 contract, meanwhile, saw an additional $700 million in part because of “higher estimated costs on production lots in 2026 and beyond,” Boeing said. Former Air Force acquisition chief Andrew Hunter last week told Inside Defense the service is again shifting its development and procurement plans for the new training jet by pushing milestone C back one year to 2026 to lock in initial operational capability by 2027.

As part of the changes, the Air Force is also offering Boeing as much as $250 million that the company can earn over time to address long-standing delivery delays and a need for updated capabilities not already listed in the original contract, including extended range, Hunter said.

The new charges come after the aerospace giant’s defense unit in the third quarter logged a $2 billion pre-tax loss, prompting Ortberg at the time to call for the company to pivot back to prior success via better discipline in its "tough contracts" and a focus on risk management in future ones.

Boeing is scheduled to report its quarterly earnings on Jan. 28.

By Tony Bertuca
January 23, 2025 at 6:26 PM

Former New York City Mayor Mike Bloomberg and several others have resigned from influential defense advisory boards amid the return of President Trump, who in the waning days of his first term used the bodies to reward loyalists and exile perceived political opponents.

Bloomberg, long a political foe of Trump, has resigned as head of the Defense Innovation Board, along with former House Armed Services Committee Chairman Mac Thornberry, internet entrepreneur Reid Hoffman and former Chairman of the Joint Chiefs of Staff Adm. Mike Mullen.

Hoffman resigned Dec. 1. Thornberry resigned Jan. 13, while Bloomberg and Mullen resigned Jan. 14 and Jan. 17, respectively.

Six members remain on the DIB and no new members have been appointed at this time.

Meanwhile, the Pentagon also said Defense Business Board Chairwoman and former Air Force Secretary Deborah James resigned Jan. 20, along with former U.S. Central Command chief Gen. Joeseph Votel as well as board members Sally Donnelly, Oscar Munoz and Safroadu Yeboah-Amankwah. Patricia Zarodkiewicz resigned from the board Dec. 31.

The Pentagon said board vice chair Linnie Haynesworth would serve as acting chairwoman until a successor to James is appointed.

There have been no changes in the Defense Policy Board.

By Tony Bertuca
January 23, 2025 at 3:48 PM

The Senate voted 51-49 today to advance the nomination of former Fox News host Pete Hegseth to be defense secretary, with two Republicans breaking ranks with the GOP and voting against him.

Every GOP senator voted in favor of advancing Hegseth’s nomination for a final confirmation vote except Sens. Susan Collins (R-ME) and Lisa Murkowski (R-AK).

If the vote totals remain unchanged, Hegseth has the support needed to be confirmed as defense secretary in a likely vote scheduled for tomorrow evening. Even if Hegseth were to lose one more GOP senator, Vice President JD Vance can be brought in to break a tie.

Meanwhile, Murkowski and Collins each cited concerns over various misconduct allegations against Hegseth also arguing the nominee, who served in the Army National Guard, lacks the experience to be defense secretary. Hegseth has denied all of the allegations, which include sexual assault, abuse of and inappropriate behavior toward women, heavy drinking and financial mismanagement.

The most recent allegation comes from his former sister-in-law, who said in an affidavit to the FBI that Hegseth was abusive toward his second wife.

Senate Armed Services Committee Chairman Roger Wicker (R-MS) said in a statement his support for Hegseth remains “ironclad.”

“The allegations unfairly impugning his character do not pass scrutiny,” Wicker said.

By John Liang
January 23, 2025 at 1:41 PM

This Thursday INSIDER Daily Digest has news on the Army's Long-Range Hypersonic Weapon program, a recently released Defense Science Board report on commercial provision of navigation signals and more.

The Army this week revealed the existence of Task Force Strategic Integrated Kinetic Effects (STRIKE) in a public notice seeking industry interest in supporting a four-year testing campaign of the two new weapon offensive missiles systems -- including a hypersonic glide body as well as guided ballistic and cruise missiles:

Army's TF STRIKE to test LRHW and MRC's ability to dis-integrate adversary defenses

The Army is looking to begin as soon as 2026 to start coordinated testing of its newest deep strike systems to assess the ability of the Long-Range Hypersonic Weapon and the Mid-Range Capability to dis-integrate complex defense systems in the opening salvos of a major fight against an adversary such as China.

The executive summary released this week of an October 2024 Defense Science Board report on "Commercial Provision of Navigation Signals for Operational Use" examines "whether commercial services could be used to fill the needs it identified, either as a short-term gap filler or a continuous complement to the Global Positioning System (GPS)":

DSB says Pentagon needs commercial PNT purchasing function

Although there are no existing commercial satellite navigation services that meet the Defense Department's position, navigation and timing needs, a Defense Science Board task force recommends in its latest report that a purchasing function be established to position DOD as an agile adopter when such solutions are available.

Document: DSB executive summary of commercial provision of navigation signals for operational use study

A new Army request for information asks vendors to describe how their solution "enables" human-machine integration -- one of the modernization priorities Gen. James Rainey, head of Army Futures Command, has championed in recent years:

Army issues RFI for IVAS Next

The Army issued a request for information today seeking industry capabilities to develop and manufacture the next planned variant of the Integrated Visual Augmentation System, known as IVAS Next.

The Air Force is continuing its effort for the Next Generation Adaptive Propulsion program, which could result in the engines for several modernization efforts including Collaborative Combat Aircraft, the Next Generation Air Dominance platform and a Next Generation Air-refueling System:

Air Force wants to 'overcome blind spots' in advanced propulsion development

The Air Force has begun questioning industry about existing and maturing advanced propulsion capabilities to support future aircraft requirements, according to two recently released requests for information.

A Government Accountability Office report released this week recommends the Defense Department "improve how it uses modular open systems approaches":

Pentagon says MOSA Implementation Guidebook 'expected to be released soon'

The Defense Department is developing a method for program offices to conduct a cost-benefit analysis of the pursuit of a modular open systems approach (MOSA) on weapon systems in a wide-ranging MOSA Implementation Guidebook DOD expects to release soon.

Document: GAO report on modular open systems approaches

By Dan Schere
January 23, 2025 at 1:02 PM

The Army and the Defense Department at large must decentralize their data, because going to an "enterprise data model" isn't realistic, a former Army acquisition senior official said today.

Young Bang, who departed his position of principal deputy assistant secretary for acquisition, logistics and technology on Jan. 20, said during a Potomac Officers Club event that the Army and the Office of the Secretary of Defense are in the process of trying to fix the “fight tonight” problem -- the need to communicate across different services, all of which have different systems.

“We have so many different things, and so many different systems, we’re never going to get to an enterprise data model. So, if you think that the Army or DOD’s going to get there, that’s a pipe dream. So, what we have to do in the meantime is figure out do you get some form technology to help us with this data mesh,” he said.

To some degree, Bang said this becomes a data mapping problem. The Chief Digital and Artificial Intelligence Office is taking on some efforts to help with data mapping “so we can actually do fires from the Army to the Navy or [the special operations forces] community or Air Force,” Bang noted.

“I think the whole notion of what the future needs to be is more of a combination of decentralized . . . not a totally centralized . . . architecture at echelon,” he said.

One of the biggest concerns Bang has is how to defend “operational deployments of algorithms” and prevent adversaries from being able to poison large language models.

“Our enemy’s always going to be looking at how do we actually impact the warfighter on the operational side. And I think the security of that, from attacks, from poisoning, all those things are critical for us to think about,” he said.

By Shelley K. Mesch
January 23, 2025 at 12:55 PM

The Space Development Agency is seeking proposals for capabilities that could "enable leap-ahead improvements" for future tranches of the Proliferated Warfighter Space Architecture.

Businesses with new architecture concepts, systems and technologies that could be used with or expand on the existing plans for SDA's low-Earth orbit constellation of satellites can submit proposals in response to a broad agency announcement posted last week.

Focus areas for the Systems, Technologies and Emerging Capabilities solicitation include optical communication terminals; advanced tactical data links and waveforms; advanced or alternate position, navigation and timing; infrared missile warning and tracking; sensor fusion; automated target recognition; cyber defense of space data networks; and radiation-hardened or -tolerant advanced processing.

SDA is beginning source selection for its Tranche 3 of operational transport and tracking satellites. The demonstration constellation Tranche 0 is on orbit, T1 is awaiting launch and T2 is in development.

By Dominic Minadeo
January 22, 2025 at 5:55 PM

Soldiers are driving around GM Defense's hybrid, next generation tactical vehicle prototype for the next month at a joint military exercise in Germany, according to an Army press release.

The NGTV-H is the vendor’s answer to the Army’s future battlefield concerns, providing capabilities like silent watch, silent drive and over 300kw of total power, John ‘JD’ Johnson, vice president of business and development for GM Defense, told Inside Defense before the Association of the United States Army’s annual trade show in October.

“It’s what the Army is looking for, as far as replacing its dated systems, i.e. the humvee and some of the other systems that they have,” Staff Sgt. Nicholas Chavez, one of the soldiers who has been testing out the vehicle, said in a Jan. 22 video.

The NGTV-H’s stealth and energy on demand from its mobile power station is important, Chavez said, because “the Army’s not getting away from batteries.” In fact, the need for power is only growing, and “this thing can withstand that.”

Combined Resolve, hosted by U.S. Army Europe-Africa, is underway at the Army’s Hohenfels Training Area in Bavaria. Designed to strengthen ties between the countries and bolster deterrence for adversaries, the exercise hosts 16 other countries and around 4,000 people from NATO Allies and European partners. It officially began Jan. 17 and runs through Feb. 16.

While there’s no program of record thus far for the NGTV-H, it’s being tested as part of Army Chief of Staff Gen. Randy George’s “Transformation in Contact,” where the service pairs soldiers with commercial-off-the-shelf technology to get instant feedback and field systems quicker. Chavez is part of the 3rd Brigade Combat Team, 10th Mountain Division, one of the first three brigades selected to participate in George’s initiative.

In October, George announced the second phase of “Transformation in Contact,” which involves adding two armored BCTs, two Stryker BCTs and more formations in the National Guard and reserves.

Another short video clip posted by the Army shows the NGTV-H quietly bobbing through off-road bumps and cruising over a washboard road.

“This thing is completely silent,” Chavez said. “You wouldn’t know -- I’ve also tested it just creeping up on people behind them, and they had to turn around like, ‘Oh my god, there’s a whole truck behind me.’ It’s that stealthy.”

By Tony Bertuca
January 22, 2025 at 5:52 PM

The Defense Department, in response to executive orders from President Trump, will send 1,500 additional U.S. troops to the southern border, provide military airlift to deport more than 5,000 people and begin construction of physical barriers to prevent illegal crossings, according to a statement from acting Defense Secretary Robert Salesses.

“President Trump directed action from the Department of Defense on securing our nation’s borders and made clear he expects immediate results,” Salesses said. “That is exactly what our military is doing under his leadership.”

Salesses, who said he convened a meeting of the Joint Chiefs of Staff, the commanders of U.S. Northern Command and U.S. Transportation Command as well as the chief of the National Guard Bureau, has established a special task force to “oversee expedited implementation” of Trump’s executive orders.

NORTHCOM will be the operational lead, supported by TRANSCOM, the military services and NGB working to assist the Department of Homeland Security.

Salesses said he is sending 1,500 U.S. troops to the southwest border, along with helicopters, crews and intelligence analysts “to support increased detection and monitoring efforts.”

“This represents a 60% increase in active-duty ground forces since President Trump was sworn in Monday,” he said.

The department will also provide military airlift for DHS deportation flights for “more than five thousand illegal aliens” detained by Customs and Border Protection agents in San Diego, CA, and El Paso, TX.

“DHS will provide inflight law enforcement, and the State Department will obtain the requisite diplomatic clearances and provide host-nation notification,” Salesses said.

The department will also begin “assisting in the construction of temporary and permanent physical barriers to add additional security to curtail illegal border crossings and illicit trafficking,” he said.

“This is just the beginning,” Salesses said. “In short order, the department will develop and execute additional missions in cooperation with DHS, federal agencies and state partners to address the full range of threats outlined by the president at our nation’s borders.”

By Vanessa Montalbano
January 22, 2025 at 3:44 PM

The Air Force awarded Lockheed Martin a $270 million contract to enable the F-22 Raptor with next generation infrared threat detection sensors, according to a company news release issued today.

The new capability, called the Infrared Defensive System, comes with a fresh suite of distributed TacIRST sensors to enhance F-22 survivability and lethality. TacIRST refers to Lockheed-made Tactical Infrared Search and Track long-range sensors to fend off severe threats or conduct reconnaissance.

"We understand the need for advanced and versatile infrared systems like IRDS that will make pilots' missions more survivable and lethal against current and future adversaries," Hank Tucker, vice president of Missions Systems at Lockheed Martin, said in a statement. "We're committed to supporting the Air Force through continuous innovation of capabilities to deter and defeat evolving threats."

The Air Force in recent budget cycles has sought to retire Block 20 F-22 jets, stating the cost-prohibitive older platforms would not be survivable in a fight with China and lack the combat-rated capabilities already integrated in newer Block 30 and 35 models.

Congress has so far prevented the service from retiring the Block 20 fighters early, citing it would decrease readiness and create operational gaps. A legal sunset already exists for the aged Raptors in fiscal year 2027.

"Lockheed Martin is proud to continue partnering with the Air Force on essential modernization efforts for the Raptor, leveraging our expertise in fifth-generation aircraft and air dominance systems to integrate capabilities that ensure uninterrupted U.S. air superiority today and into the future,” Justin Taylor, vice president of the F-22 program at Lockheed Martin, said in a statement.

By John Liang
January 22, 2025 at 2:41 PM

This Wednesday INSIDER Daily Digest has news on Pentagon modular open systems approaches, the Sentinel ICBM program and more.

A new Government Accountability Office report recommends the Defense Department "improve how it uses modular open systems approaches":

Pentagon says MOSA Implementation Guidebook 'expected to be released soon'

The Defense Department is developing a method for program offices to conduct a cost-benefit analysis of the pursuit of a modular open systems approach (MOSA) on weapon systems in a wide-ranging MOSA Implementation Guidebook DOD expects to release soon.

Document: GAO report on modular open systems approaches

The Air Force's previous acquisition chief spoke about the Sentinel intercontinental ballistic missile program before leaving office last week:

Hunter: Sentinel progressing toward first flight test while waiting for new milestone B decision

The LGM-35A Sentinel nuclear missile system is progressing toward flight testing, now-former Air Force acquisition chief Andrew Hunter told Inside Defense, even as officials re-baseline the program.

The service tested out a vehicle protection system base kit on the Bradley at Yuma Proving Ground, AZ, where soldiers spent a month with the VBK integrated on the vehicle:

Army tests vehicle protection system on Bradleys

After weeks of testing, Bradley Fighting Vehicle crews have a new layer of protection, a test officer said in a Jan. 16 Army press release.

Inside Defense chatted with outgoing Army acquisition chief Doug Bush last week:

Bush: Munitions demand won't decrease regardless of Ukraine

The Army's concerted effort to ramp up its ammunition capacity in response to the Russia-Ukraine war over the last three years will have key global implications regardless of the Trump administration's approach to Ukraine, Doug Bush said last week as he exited his role of assistant secretary of the Army for acquisition, logistics and technology.

Congress worries about foreign energetics procurement, but OIB is in 'excellent shape,' former acquisition chief argues

Congress is concerned about the Army procuring energetic materials outside the United States, but that's the way it's always been done, argued Doug Bush, the service's previous acquisition chief, before he left office.

By John Liang
January 21, 2025 at 2:33 PM

This Tuesday INSIDER Daily Digest has news on Army energetics procurement, Air Force aircraft availability, Navy mine countermeasures and more.

Inside Defense recently held exit interviews with the Army and Air Force acquisition chiefs:

Congress worries about foreign energetics procurement, but OIB is in 'excellent shape,' former acquisition chief argues

Congress is concerned about the Army procuring energetic materials outside the United States, but that's the way it's always been done, argued Doug Bush, the service's previous acquisition chief, before he left office.

'I don't like the trend line': Exiting Air Force acquisition chief warns of depleting aircraft availability

More than a decade after the fiscal year 2013 sequestration, the Air Force's foundational accounts are still recovering from negative impacts to readiness, modernization and operations and maintenance.

The deployment of MCM mission packages on trimaran-hulled, Independence-class Littoral Combat Ships marks the Navy's departure from using MH-53 helicopters and Avenger-class MCM ships for similar missions:

Deployment of mine countermeasures package marks a 'generational change'

Rollout of the mine countermeasures mission package on the Independence-variant Littoral Combat Ship remains on track for later this fiscal year, according to a Navy official.

A new Defense Department report provides an overview of the implementation of 26 Planning, Programming, Budgeting and Execution reform initiatives:

DOD implementing budget reforms but seeks more flexibility from Congress

The Defense Department is working to implement internal reforms to its 1960s-era budget planning and execution process, but the Pentagon is still asking Congress for greater spending flexibility that appropriators have thus far declined to provide.

Document: DOD's PPBE implementation plan

A spiking firing rate of M777 lightweight howitzer systems has caused a requirement to produce more cannon tubes:

Lightweight howitzer tube production proves reliable for Army, and in demand

Watervliet Arsenal, NY, has seen more production in the last three months than it has in the last 40 years, and each month was faster than the last, according to the commanding general of Army Tank-automotive and Armaments Command.

The Small Business Investment Company Critical Technologies Initiative was the result of a partnership between the Pentagon's Office of Strategic Capital and SBA’s Office of Investment and Innovation -- aimed at pairing sources of private capital with federally guaranteed loans meant to boost investment in technology areas deemed high-priority for DOD:

DOD, SBA unveil names of first funds under new critical technology investment initiative

The Defense Department and Small Business Administration on Friday published the names of all but one of 18 licensed and "green light approved" funds forming the first cohort of the Small Business Investment Company Critical Technologies Initiative.

By Vanessa Montalbano
January 21, 2025 at 1:59 PM

President Trump on Jan. 17 announced he would nominate former Space Force Lt. Col. Matthew Lohmeier to be the next Air Force under secretary.

“Matthew will work with the GREAT Secretary of Defense Nominee, Pete Hegseth, to end the devastating ‘woke’ policies that have destroyed our Military, and make our Country STRONG AGAIN,” Trump wrote in a post on Truth Social, his social media site.

If confirmed by the Senate, Lohmeier would become the service’s No. 2 civilian and would serve alongside Troy Meink, Trump’s pick for Air Force secretary.

Lohmeier was relieved of his command duties in 2021 after self-publishing a book and subsequently speaking on a podcast alleging Marxism was spreading across the military. The former commander of 11th Space Warning Squadron also criticized the Pentagon’s diversity, equity and inclusion programs and other initiatives while speaking on the podcast.

Then-Lt. Gen. Stephen Whiting removed Lohmeier from his post due to a loss in confidence in his ability to lead, the Space Force said at the time. Now Whiting is the four-star general head of U.S. Space Command, potentially putting the two at odds once again.

Lohmeier graduated from the Air Force Academy in 2006 and began his active-duty career as a T-38 Talon instructor pilot and an F-15C Eagle fighter pilot before shifting his focus to space-based missile warning at the stand up of the Space Force.

By Tony Bertuca
January 21, 2025 at 1:46 PM

The Pentagon released a list today of officials that have been sworn into senior defense positions.

The list includes:

  • John Byers, Deputy Assistant Secretary of Defense (South and South-East Asia)
  • Colin Carroll, Chief of Staff to the Deputy Secretary of Defense
  • Austin Dahmer, Deputy Assistant Secretary of Defense (Strategy)
  • Timothy Dill, Senior Adviser to the Assistant Secretary of Defense for Manpower and Reserve Affairs)
  • Michael DiMino IV, Deputy Assistant Secretary of Defense (Middle East)
  • Mark Ditlevson, Senior Adviser, Department of the Navy
  • Michael Duffey, Deputy Chief of Staff to the Secretary of Defense
  • Stephen Ferrara, Principal Deputy Assistant Secretary of Defense for Health Affairs
  • David Fitzgerald, Chief Strategic Adviser, Department of the Navy
  • Eric Geressy, Senior Adviser to the Secretary of Defense (Strategy)
  • Terence Hagans, Chief of Staff, Department of the Army
  • Mateo Haydar, Special Assistant to the Under Secretary of Defense for Policy
  • Macon Hughes, Principal Deputy Assistant Secretary of Defense for Legislative Affairs
  • Jules Hurst III, Deputy Assistant Secretary of Defense (Force Readiness)
  • Colby Jenkins, Deputy Assistant Secretary of Defense (Irregular Warfare and Counter Terrorism)
  • Joseph Kasper, Chief of Staff to the Secretary of Defense
  • Rafael Leonardo, Deputy Assistant Secretary of Defense (Plans and Posture)
  • Bryn Woollacott MacDonnell, Special Assistant to the Secretary of Defense
  • James Mazol, Senior Adviser to the Under Secretary of Defense for Research and Engineering
  • Sean C. McAndrews, Confidential Assistant to the Secretary of Defense
  • John Noh, Deputy Assistant Secretary of Defense (East Asia)
  • Matt McNitt, Deputy White House Liaison
  • Tami Radabaugh, Deputy Assistant to the Secretary of Defense for Public Affairs (Strategic Engagement)
  • James Sapp, Deputy Assistant Secretary of Defense (House Affairs)
  • Darin Selnick, Senior Adviser to the Secretary of Defense
  • Katherine Thompson, Deputy Assistant Secretary of Defense (Global Partnerships)
  • Jonathan Ullyot, Principal Deputy Assistant to the Secretary of Defense for Public Affairs
  • Alexander Velez-Green, Senior Adviser to the Under Secretary of Defense for Policy
  • Patrick Weaver, Special Assistant to the Secretary of Defense
  • Kingsley Wilson, Deputy Pentagon Press Secretary
  • Patrick Witt, Chief of Staff, Office of Strategic Capital
  • Charles Young III, Principal Deputy General Counsel (DOD)
By Nick Wilson
January 21, 2025 at 12:41 PM

The Navy completed a first-of-its-kind test last month when an unmanned surface vessel was refueled without the help of any onboard personnel in a demonstration that marks a step forward for the Defense Advanced Research Projects Agency's No Manning Required Ship (NOMARS) program.

Conducted by DARPA in coordination with the Navy’s unmanned maritime systems program office (PMS-406) and USV Squadron 1 (USVRON-1) using the USVs Ranger and Mariner, the test demonstrated refueling technology designed by contractor Serco for use aboard the future NOMARS USV Defiant.

The NOMARS initiative was launched in 2020 with the goal of developing an unmanned platform capable of operating for up to a year without human intervention or maintenance. Serco was selected to build the first vessel in 2022, and in April, Navy officials said NOMARS would transition to the service in 2025.

During the demonstration, Ranger carried a “receiving station” designed for the future Defiant while Mariner deployed a refueling probe to complete the operation, according to a Dec. 19 DARPA announcement. Personnel were present on both vessels during the test but were not involved in operations on the fuel-receiving side.

“The team demonstrated all parts of the system [concept of operations] while underway, including passing the lead-line to the refueling side, passing and connecting the refueling probe to the USV side and pumping water. This was the first on-water test of the system, and all parts of the operation were successfully demonstrated,” the announcement states.

Current USV refueling techniques require people to board the vessel to handle lines and hoses, the notice continues. The presence of people on the USV imposes restrictions on its design and operations, while the refueling process itself can be dangerous for personnel in rough seas.

The next at-sea refueling test is slated to take place using the Defiant USV during the vessel’s sea trials. The 180-foot-long, 240-metric-ton vessel is nearing the completion of construction and is scheduled to begin a “multimonth at-sea demonstration” in the spring of 2025, the notice states.

By Theresa Maher
January 21, 2025 at 10:57 AM

The Defense Department awarded $5.1 million to Rare Resource Recycling Inc. (REEcycle) in efforts to support its recovery of four elements critical to neodymium iron boron magnets, which enable a variety of defense applications, DOD announced Friday.

The award, granted through the Defense Production Act’s Title III, also supports the Pentagon’s efforts to build a mine-to-magnet domestic supply chain capacity.

“A resilient mine-to-magnet supply chain will require diverse sources for rare earth elements,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in a statement. “REEcycle’s capabilities will help the United States become less dependent on foreign sources by extracting full value from material that would otherwise end up in landfills.”

The project being funded would restart an existing demonstration facility and advance commissioning of a commercial facility “with an estimated annual production of 50 tons of rare earth oxides,” according to the release.

With the relaunch of the demonstration plant, REEcycle would use its proprietary methods to recover more than 98% of the rare earth elements essential to neodymium iron boron magnets, according to DOD.

That proprietary process starts with discarded magnets from electronic waste -- including but not limited to hard disk drives, wind turbine motors, electronic vehicle and bike motors, according to REEcycle’s website.

“With our low-cost, low waste recycling process, we are creating a new source of rare earth supply with the same sustainable focus of the technologies they make possible,” REEcycle says.

The commissioning of the commercial plant would then allow REEcycle to position itself as a supplier to “companies engaged in downstream metallization and magnet manufacturing,” according to the release.

“By enabling REEcycle to recover critical materials from electronic waste,” Anthony Di Stasio, director of the Manufacturing Capability Expansion and Investment Prioritization directorate, said, “this award will support the DOD’s work to expand the supply of rare earths needed for the production of defense articles.”

It’s the latest of six awards made through the Defense Production Act Purchases Office, which total $295.9 million since the start of fiscal year 2025, DOD said.

The announcement comes nearly a week after Deputy Administrator for the Defense Logistics Agency’s Strategic Minerals Office Theresa Leland discussed her team’s efforts to recycle critical materials such as rare earth minerals.

Among those key materials her office has found “fairly accessible to remove from end-of-life products,” Leland said during a panel discussion hosted by the Naval War College, is germanium.

Germanium is a rare mineral possessing a wide array of military applications -- one of many the Chinese Commerce Ministry banned the export of to the United States in a December announcement.