Bayan Mining and Minerals Ltd (ASX:BMM, OTC:BMMKF, FRA:7JL) has secured membership of the US Defense Industrial Base Consortium (DIBC), opening a pathway to engage directly with US defence programs and funding linked to critical minerals.
The membership enables participation in US Department of War-backed initiatives, including grants, cooperative agreements and technology development programs aligned with rare earths supply chains.
“Bayan’s acceptance into the DIBC represents a significant step in advancing our strategy to align with US defence supply chain. The DIBC provides a direct pathway to engage with the US Department of War and participate in programs supporting the development of secure and resilient critical mineral supply.
"Our Yttrium Upgrade patent positions us as a potential enabler of future US yttrium supply at a time when the United States is fully reliant on imports. Combined with our broader rare earth processing technology portfolio and the Desert Star project, DIBC membership enhances our ability to pursue collaborative opportunities, funding pathways and long‑term commercial partnerships in the United States.”
Access to funding and defence programs
DIBC operates under the US Other Transaction Authority (OTA) framework, which allows flexible and non-dilutive funding, faster contracting timelines and potential progression from prototype projects to production contracts.
The membership provides direct access to defence program offices and collaboration opportunities with contractors, research institutions and government agencies, strengthening its position within the U.S. industrial ecosystem.
The company added that successful projects could transition to follow-on production contracts without requiring a new competitive tender process.
Yttrium focus aligns with US supply concerns
The strategic focus centres on yttrium, a rare earth element classified as critical to US defence applications, including radar, optics, aerospace systems and advanced electronics.
The US is currently 100% reliant on imported yttrium, with more than 70% sourced from China, highlighting supply chain vulnerability.
Bayan said its proprietary yttrium upgrade technology, which uses iminodiacetic acid functionalised resin, has demonstrated the ability at laboratory scale to produce an enriched yttrium oxide stream while reducing processing complexity and cost.
The company also holds licences over three additional rare earth processing technologies from the Colorado School of Mines, covering beneficiation and leaching methods.
Positioning within US critical minerals strategy
The US Government is actively pursuing domestic supply chains for rare earth elements, including refining and separation capacity, supported by funding programs, offtake agreements and investment in vertically integrated projects.
Recent funding initiatives include support for domestic refining capacity, a US$96 million offtake commitment to Lynas Rare Earths and significant financial backing for MP Materials to advance heavy rare earth separation.
Bayan said its entry into the DIBC aligns with its strategy to establish a US-aligned rare earths business, with its processing technologies potentially applicable across beneficiation, leaching and separation stages.
Next steps and project pipeline
Through its DIBC membership, Bayan plans to align its technologies with U.S. defence requirements, submit proposals into funding programs and pursue collaborative partnerships within the consortium.
The company also intends to advance pilot and demonstration projects to support commercialisation and potential offtake opportunities.
Bayan’s US-based Desert Star project in California, located near the Mountain Pass rare earth mine, is expected to underpin its longer-term ambitions in the region, supported by established infrastructure and proximity to existing rare earth operations.