WASHINGTON, D.C. — The U.S. Department of War announced a series of industrial base moves it says are aimed at strengthening national security supply chains, including new investments in critical minerals processing, a major munitions manufacturing campus now under construction in Indiana, and a reorganization of the department’s team focused on Anomalous Health Incidents.
What This Means for You
- New federal investments will expand U.S. processing capacity for optical-grade materials and rare earth minerals used in defense systems.
- A new munitions campus in Indiana is intended to speed production of missiles and rocket systems by clustering suppliers in one location.
- The department says its Anomalous Health Incidents team is being moved under a more technical office while day-to-day work continues.
Critical Minerals Investments Delayed by Shutdown
The department said it is moving forward with two previously awarded investments that were announced February 20 after being delayed by a government shutdown.
The first is an $11.8 million Defense Production Act Title III investment dated January 30 to Umicore Optical Materials USA Inc. Title III of the Defense Production Act allows the federal government to fund expansion of domestic industrial capacity for materials and components considered essential to national defense.
The department said Umicore will establish a new capability in Quapaw, Oklahoma, to process materials needed for “critical optical applications,” which can include components used in advanced sensors and imaging systems.
“UOM is an important part of the optics supply chain,” said Jeffrey Frankston, acting deputy assistant secretary of war for industrial base resilience. “We look forward to partnering with them to expand these capabilities.”
The second investment is a two-year, $2 million award dated September 3, 2025, to ReElement Technologies Corporation of Fishers, Indiana, funded through the department’s Industrial Base Analysis and Sustainment program.
“By processing diverse feedstocks — including ores, recycled magnets, and manufacturing waste — at its scalable Marion, Indiana facility, RTC supports the Department’s 2027 mine-to-magnet goal and helps reduce our reliance on Chinese-dominated supply chains,” said Assistant Secretary of War for Industrial Base Policy Michael Cadenazzi.
Rare earth elements such as neodymium, praseodymium, dysprosium, and terbium are used in high-performance magnets found in aircraft, submarines, missiles, satellites, electric vehicles, and renewable energy systems.
Munitions Campus Breaks Ground in Indiana
The department also announced that a groundbreaking was held February 19 for a Munitions Campus in Bloomfield, Indiana, described as a public-private partnership meant to expand domestic munitions and energetics production.
Energetics refers to the chemicals and materials used in propellants and explosives.
The department said it previously awarded $75 million in Defense Production Act Title III funding to ACMI Federal to support the campus through a shared-infrastructure model designed to lower operating costs for manufacturers.
As part of the ceremony, Prometheus Energetics LLC broke ground on its headquarters and solid rocket motor manufacturing facilities as the campus’s anchor tenant.
“The Munitions Campus Program Represents A Critical Step Toward Modernizing America’s Defense Industrial Base,” Cadenazzi said. “By investing in shared infrastructure and increased manufacturing capacity, the Department of War is ensuring the United States remains ready, resilient, and capable of meeting future national security challenges.”
Aissa Tovar, director of Defense Production Act purchases within the department’s industrial base office, added, “Our federal investment is the key that unlocks the $600 million in private capital making all of this possible.”
The department said the campus will support production scaling for systems including Tomahawk, Javelin, and Stinger missiles, along with the Guided Multiple Launch Rocket System, and that phased operations are expected to begin in 2027.
Anomalous Health Incidents Team Realigned
The department also announced the realignment of its Anomalous Health Incidents Cross-Functional Team to the Office of the Under Secretary of War for Research and Engineering, effective February 6.
The department said the shift reflects the mission’s increasing technical scope and complexity and will provide additional expert oversight.
Rear Adm. Michael J. Thornton was named military assistant to the AHI team under Principal Deputy Assistant Secretary of War for Critical Technologies Peter Highnam.
“I am proud to have one of our Naval Medical Warriors supporting the War Department’s cross-functional team addressing AHI,” said Vice Adm. Darin Via, director of the Defense Health Agency. “As the Director of the Defense Health Agency, I am proud of our support for this critical mission, knowing we all remain committed to delivering timely care, advancing research, and ensuring transparency for our warfighters and all whom we serve.”
The department said current program activities, including scientific integration and clinical coordination, will continue uninterrupted during the transition.
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