Arizona court lets Hermosa critical minerals project proceed

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Hermosa Critical Minerals Project

Highlights

The U.S. District Court for the District of Arizona denied a preliminary injunction, allowing construction of the Hermosa critical minerals project to proceed amid litigation.
The Hermosa project is federally approved to expand onto Coronado National Forest, bolstered by $20 million from the Department of War and $166.2 million from the Department of Energy.
The project aims to produce battery-grade manganese and zinc, addressing U.S. dependence on imports and China's 95% share of global manganese refining capacity for advanced batteries.

Court ruling supports domestic minerals push

As reported by the U.S. Department of Justice, the U.S. District Court for the District of Arizona last week denies a motion for a preliminary injunction that sought to stop construction while litigation continues. The court says the plaintiffs do not show they are likely to succeed on their claims, do not make the required showing of likely irreparable harm, and face a substantial public interest in domestic critical-mineral supply, with national security interests described as relevant and substantial.

The challenge comes in late October, when two environmental groups contest agency decisions tied to the project and ask the court to halt work pending the case. With the motion denied, approved work on the project can proceed while the court considers the merits on an expedited schedule.

Justice Department Principal Deputy Assistant Attorney General Adam Gustafson says manganese is indispensable to national defense and that the U.S. cannot afford to remain dependent on foreign supply chains. He says the ruling allows work to proceed on what the department describes as the only domestic project positioned to produce battery-grade manganese.

Project scope and strategic impact

After roughly three years of environmental review, the U.S. Forest Service approves the Hermosa project in July 2026. The expansion extends existing mining operations on private land onto the Coronado National Forest after consultation with the U.S. Fish and Wildlife Service under the Endangered Species Act.

The approval includes more than 400 binding design features, mitigation measures and other conditions intended to reduce environmental effects. Federal backing also includes $20 million awarded under the Defense Production Act by the Department of War and $166.2 million from the Department of Energy to help accelerate manganese and zinc production and refining.

The minerals involved carry broad industrial and defense importance. The Justice Department says manganese and zinc are essential for steel used in military vehicles and naval vessels, while battery-grade manganese is also used in advanced lithium-ion batteries that power unmanned aerial vehicles, radios and other defense equipment. The U.S. relies entirely on imports of manganese and almost entirely on imports of zinc, with China accounting for about 95% of global refining capacity for manganese used in advanced batteries.

As a reminder, we recently reported on China rare earth exports continuing to Europe despite the looming U.S.-China trade deadline.

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