by Jay Shidler, Director of Business Recruitment, Oklahoma Department of Commerce

As the United States looks to strengthen its critical mineral supply chains it is vital that America’s strategy goes beyond the mine. We also need robust processing and manufacturing capabilities to turn raw materials into finished products.

When mining critical minerals such as lithium, copper or graphite those materials must often be separated, purified, refined and converted into chemical compounds before they can be used in products like batteries and semiconductor chips. Keeping this entire process in the US reduces our need to outsource and streamlines the journey from raw minerals to components and finished goods.

As we build greater resilience across this critical supply chain, developing these midstream capabilities domestically will be an essential part of the equation. States such as Oklahoma – uniquely equipped with the natural resources, infrastructure, workforce and industrial capacity – stand ready to play a vital role in that broader effort.

 

What a domestic supply chain can look like in practice

When it comes to expanding America’s domestic critical mineral supply chain beyond the mine, developing processing and advanced manufacturing capabilities offers a prime example of what that supply chain looks like in action.

Oklahoma provides a compelling case study. The state’s expanding footprint in advanced manufacturing and mineral processing demonstrates how the different stages of this vital supply chain can successfully take shape within the US.

USA Rare Earth recently commissioned the first phase of magnet production at its 310,000-square-foot rare-earth manufacturing facility in Stillwater. The plant stands as a premier example of onshoring downstream rare-earth processing and manufacturing capabilities.

Stardust Power is advancing plans for a major $500 million battery-grade lithium carbonate refinery in Muskogee. Designed to scale up to 50,000 metric tonnes of lithium annually, the facility aims to anchor domestic supply chains for EV batteries.

Recycling represents another vital pillar of this domestic capacity.

In Atoka, Green Li-ion operates North America’s first commercial-scale battery-recycling facility capable of converting spent battery “black mass” directly into battery-grade precursor cathode active material. Battery-grade precursor cathode active material (pCAM) produced by the recycling unit is pictured above.

Other critical minerals further underscore the necessity of domestic refining and recycling capabilities. Oklahoma is home to Umicore’s Electro-Optic Materials site, a global leader in refining, recycling and supplying germanium – a critical material used in fibre optics, medical diagnostics and surveillance equipment that cannot be mined as a primary commodity. Umicore has continued investing in its US expansion, bolstering America’s access to vital materials following China’s export controls on germanium and gallium.

 

The challenges of scaling supply

With every new expansion comes the hurdle of cost. The separation and refining of these materials account for a major share of total mine-to-product expenses, as rare earths contain multiple elements that require highly complex separation processes. Furthermore, mining, crushing, milling and chemical processing are deeply energy and water intensive, driving up both operating and capital expenditures. Fortunately, Oklahoma boasts some of the most affordable and reliable energy in the nation.

Rare earth projects also frequently encounter a “financing gap,” as developers must invest heavily in exploration, technology and facilities long before proving commercial performance. Consequently, customers often hesitate to commit to long-term purchases until production has been firmly demonstrated. To help offset these hurdles, Oklahoma maintains one of the most competitive business cost environments in the nation.

Infrastructure presents another critical hurdle: a viable project requires far more than just a mineral deposit. It demands reliable water and power, robust road and rail connections, proper waste and tailings management, and close proximity to downstream processors and customers to keep materials moving. Fortunately, Oklahoma checks those boxes and more, including being home to the nation’s furthest inland, ice-free river port.

Rare earth mining and processing also demand a highly specialised workforce of geologists, exploration experts, mining engineers and heavy-equipment operators – talent pools that are typically scarce outside established production hubs. Overcoming this requires close collaboration with universities, local trade schools and research institutions to cultivate a domestic talent pipeline. Fortunately, Oklahoma is already taking those exact steps.

 

The goal: greater domestic capacity

The US needs an entire rare-earth value chain, not just mines. America will remain vulnerable if most refining capacity remains heavily focused abroad.

That comprehensive approach is already taking shape in places such as Oklahoma where strategic investments across every stage of the mineral supply chain offer a blueprint for domestic growth. The true opportunity goes beyond simply producing more minerals: it lies in strengthening the vital connections between the resources, infrastructure, workforce and industries required to turn raw materials into finished products.

 

*Jay Shidler is director of business recruitment at the Oklahoma Department of Commerce, where he collaborates with companies statewide, nationally and internationally to drive job creation and capital investment. Serving as the primary liaison for prospective businesses he helps spearhead new economic opportunities across the state. In 2026 Shidler was also appointed to the board of directors of the Export-Import Bank of the United States.