Idaho Strategic Resources Wins DOE Grant for Rare Earth Project

Idaho Strategic Resources won a Department of Energy grant for a rare earth processing project, the company said May 21. The award, under DOE Funding Opportunity 3105, follows a December 2023 submission. The company called the May 19 DOE announcement a "welcomed achievement."

The grant targets domestic rare earth separation and processing, a bottleneck in the US supply chain for magnets used in EVs, wind turbines, and defense systems. Idaho Strategic Resources operates the Lemhi Pass rare earth project in Idaho, one of the largest known rare earth deposits in the US.

Rare earth stocks have drawn attention as the US pushes to reduce reliance on Chinese processing. China controls roughly 60% of global rare earth mining and over 80% of processing. The DOE grant signals federal backing for domestic processing capacity, which could benefit other US rare earth developers and miners.

Peers in the space include MP Materials (NYSE:MP), which operates the Mountain Pass mine in California, and Energy Fuels (NYSE:UUUU), which is developing rare earth processing at its White Mesa mill in Utah. Both companies have received DOE support in prior funding rounds.

The grant does not guarantee commercial production. Idaho Strategic Resources must still complete feasibility studies, secure permits, and raise additional capital. The company did not disclose the grant amount or a timeline for the project.

Shares of Idaho Strategic Resources rose after the announcement. The stock has gained roughly 40% year-to-date, partly on optimism around US rare earth policy.