Pentagon Doubts Over Rare Earths Deal Provoke White House Clash

The Pentagon is weighing whether to scrap an $80 million conditional loan offer to rare-earths refiner ReElement Technologies Corp., touching off a clash with the White House over an agreement that was meant to help break China’s chokehold on critical minerals.

The Pentagon’s Office of Strategic Capital announced the agreement with ReElement in November. Since then, officials vetting the company have raised doubts about its ability to scale its technology, as well as its long-term revenue forecasts, according to people familiar with the process.

The ReElement deal hasn’t been canceled and may still go ahead, according to the people, ...