The Pentagon is offering a conditional $500 million loan to Phoenix Tailings Inc. to support construction of a domestic rare-earth processing facility, according to defense and market reporting. The financing is described as long-term debt funding provided through the Pentagon’s Office of Strategic Capital, with details characterized as contingent on the company meeting program and deal requirements. The effort is part of the Defense Department’s broader push to strengthen domestic supply chains for rare-earth elements used in modern military systems and advanced electronics. Coverage links the move to U.S. government efforts, including White House actions, aimed at increasing domestic production and processing capacity for rare-earth minerals. The sources describe Phoenix Tailings as a U.S. company focused on rare-earth element processing and say the planned facility would help reduce reliance on foreign processing capacity. Bloomberg and other outlets frame the announcement as a key step in securing financing for the plant, while the Washington Times emphasizes the defense supply-chain motivation behind the loan.