Virginia invests $481K in Sussex County project to boost clean energy supply chain

State officials say the effort could help lower long-term costs for clean energy technology and bring new economic development to Southern Virginia

In a rural corner of Sussex County, the Stony Creek community may soon play a larger role in America’s clean energy future, which state officials said could bring new job growth and investment.

The Virginia Clean Energy Innovation Bank (VCEIB) recently announced that it will invest $481,000 to support planning for a potential rare-earth mineral processing facility in Stony Creek. The funding will support a feasibility study and engineering plans for a proposed monazite processing plant. Monazite contains rare earth elements that are used in electric vehicle (EV) motors, wind turbines, electronics, and defense technology.

VCEIB officials said the funds have already been approved for Atlantic Strategic Minerals (ASM), the company leading the project, to use. In a statement to Dogwood, ASM Executive Director Craig Hairfield said the feasibility study is “now underway and is scheduled to be completed in the first half of 2026.”

State officials said the project could help reduce the country’s dependence on China, which currently processes about 90% of the world’s rare earth elements. The project could have long-term benefits for Virginia residents by eventually making clean energy technologies—including EV motors and wind turbine components—cheaper and easier to produce domestically, and may lower costs for consumers, according to Virginia Department of Energy Director Glenn Davis.

“Projects like these are essential to achieving Virginia’s long-term goals for energy development, energy independence, and energy security,” said Davis in a press release. “Supporting this project can help unlock significant federal investment into Southern Virginia creating jobs and increasing tax revenue.”

ASM operates heavy mineral sands mines in Sussex and Dinwiddie counties and has invested at least $50 million in Virginia since 2024. Leaders at the agency said the new plant could allow the company to extract valuable rare earth elements already present in existing materials—resources that currently can’t be processed in-state.

Julianne Szyper, deputy director of Virginia Department of Energy, said the investment could position Virginia to “play a national role as a critical mineral supplier,” while VCEIB Director Simon Glossop said the Energy Bank aims to support emerging technologies that deliver “measurable benefits for Virginia communities.”

ASM is headquartered in Petersburg and makes up one of only two heavy mineral sands mining and processing operations in the country. Its mineral separation plant is also the largest in North America. Hairfield said the support “underscores Virginia’s commitment to strengthening domestic critical minerals supply chains.”

According to officials, by processing rare earth elements inside the state rather than overseas, Virginia could strengthen its clean energy supply chain and keep more of the economic impact local.