CVMR announces groundbreaking with Amarillo for rare earth processing plant

CVMR (Texas) hosted a groundbreaking ceremony Monday with the Amarillo Economic Council (Amarillo EDC) to kick off a partnership with the city of Amarillo for a $1.5 billion critical minerals refinery, which would be the first of its kind anywhere in the United States.

The 500,000-square feet facility is billed as being environmentally neutral and will bring more than 1,000 new jobs to the region, with other opportunities for jobs to be added when additional phases are completed.

The Amarillo EDC along with Amarillo and Potter County were able to attract CVMR (Texas) here due to the centralization of the city within the country and by providing a 100% tax abatement incentive for 10 years. CVMR (Texas), which stands for Chemical Vapor Metal Refining, is a group of companies specializing in refining rare-earth metals, which is dominated by Chinese refineries. Currently, the United States has only one rare earth mine located in Mountain Pass, California, and no processing facilities such as the one to be built in Amarillo.

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With rare earth elements being a key component of more than 200 products across a wide range of applications — especially high-tech consumer products such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions — the need to process these minerals here reduces reliance on China’s dominance in the field. It is even more crucial to the U.S. defense department in its use of rare earth elements, which are used in fighter jets, missile systems, radar, guidance, and multiple other combat-related uses.

Present at the groundbreaking event were U.S. congressional colleagues Sheila Jackson Lee, representing the 18th Congressional District in Houston, and Ronny Jackson, representing the Panhandle and the 13th District. While representing opposite political parties, the representatives worked to bring this crucial business to their respective districts. Rare earth minerals will be brought in through the port of Houston and transported to Amarillo for processing.

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“This shows what can happen when we work on behalf of America working together to solve problems,” Jackson Lee said. “Many of these precious metals come from nations that we are having difficulty with, such as China. China has a great deal of capacity for providing these precious metals, and this gives us some independence from that. This helps us with our own national security and gives us the capability to produce these elements here and have the ability to use a friendly supply chain, rather than relying on China.”

Jackson Lee said that it was imperative to be able to break the stranglehold that China has on supply issues that has impacted the United States with its ability to produce or receive certain products.

Jackson also spoke about the importance of the ability of the United States to be able to process these minerals and its impact on Amarillo.

“We have to do something about China’s dominance in this industry,” Jackson said. “‘This is a win-win for everyone involved. This will increase the efficiency of our market for rare earth minerals. That we were able to work together to make this happen just speaks to the unique opportunity that this project provides.”

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Kamran Khozan, the founder chairperson and CEO of CVMR, spoke about the reasoning for moving this industry into the Amarillo area.

“This is going to be the first critical mineral refinery ever built in the United States,” Khozan said. “Right now, we do not have any such refineries in the United States. We are at the mercy of foreign countries to supply us with refined metals, and so that’s what we want to do.”

Kevin Carter, President and CEO of the Amarillo EDC, spoke about the historic implications for the city of this project.

“Today, history is being made in Amarillo,” Carter said. “The addition of CVMR (Texas) to our city will have a tremendous impact on the local, national and international level. CVMR (Texas) is set to change the landscape of employment and business opportunities in Amarillo. This is the biggest project that Amarillo EDC has ever been a part of, and we are proud to welcome CVMR (Texas) to our great city.”

Amarillo Mayor Ginger Nelson spoke about the city’s hard work in selling businesses on setting up in the area and the enormous impact of having the first rare earth element processing plant in the country.

“Amarillo is synonymous with opportunities for business; we have low taxes and a workforce with a strong work ethic,” Nelson said. “Our central location and our community’s willingness to partner with businesses create a unique season for growth and diversification for Amarillo’s economy. This project is proof of that, and Amarillo is anticipating the years of successful partnership it will have with CVMR (Texas)."

She spoke about her role as ambassador for the city, trying to bring more employment opportunities for the citizens she serves. The jobs with CVMR (Texas) will pay an average salary of $97,000 to its workforce. Nelson feels that this project will put Amarillo on the global map since it will be the first in the United States and allow new supply chains to be developed.

Asked if she ever envisioned bringing this type of project to Amarillo, Nelson said that this type of opportunity has impact that she hoped to help bring to the city.

“This historic project impacts developing for Amarillo; this is the largest economic development deal we have ever brought to the city,” Nelson said. “This is an amazing opportunity for our city, which benefits Amarillo for years to come and is a unique opportunity for us.”

This article originally appeared on Amarillo Globe-News: CVMR (Texas) announces groundbreaking for processing plant in Amarillo