The Defense Department's Office of Strategic Capital has issued a $725 million conditional loan commitment for rare-earth processor Energy Fuels Inc. -- yet another move aimed at accelerating domestic production of critical and rare-earth minerals.

The June 18 announcement comes just two days after OSC disclosed a $500 million loan commitment to rare-earth processor Phoenix Tailings and eclipses the earlier announcement as one of the largest financing actions revealed to date from the Pentagon’s credit office.

Energy Fuels specializes in commercial-scale uranium production, but the OSC backing -- combined with other private capital investments -- will allow the company to expand into rare-earth separation and metallization with the buildout of a new U.S.-based facility, DOD said.

Phoenix Tailings already specializes in these two processes, which transform refined rare-earth materials into metals used in permanent magnets and other advanced products.

“OSC’s support to Energy Fuels represents an important step in strengthening the full mine-to-magnet supply chain, specifically at the midstream stage,” said OSC Director David Lorch.

The company is based in Utah where it runs its uranium processing and rare-earth oxide separation facilities in White Mesa Mill.

This latest loan commitment marks OSC’s mobilization of more than $11 billion in total capital from public and private sectors to support the U.S. industrial base in fiscal year 2026, and the commitment of more than $5 billion in debt financing over the same period, DOD said.

Under Secretary of Defense for Research and Engineering Emil Michael said the move drives an “aggressive effort” to close supply chain vulnerability gaps in the domestic rare-earth element supply chain.

The announcement did not disclose details about an anticipated timeline, loan terms or the amount of private capital already committed to the Energy Fuels deal.