Long known for its oil and gas heritage, Oklahoma is making an unexpected shift toward becoming a key player in the critical minerals industry.
This transformation comes as the United States works to reduce its dependence on China for materials essential to clean energy, military applications, and electronics manufacturing.
At the forefront of this industrial shift is Westwin Elements, a startup based near the Wichita Mountains. Westwin operates the only nickel refinery in the United States, a significant asset as nickel is vital to lithium-ion batteries and defense systems.
Scaling Domestic Nickel Production
Westwin’s current operations can refine 200 tonnes of nickel annually. However, the company aims for rapid expansion, with plans to process up to 34,000 tonnes per year by 2030. This would represent 10% of the total U.S. demand for nickel.
The company’s efforts align with Oklahoma’s strategic push to decrease U.S. reliance on Chinese mineral imports, particularly amid growing trade tensions.
Nickel’s role in electric vehicles (EVs) and defense makes this facility particularly significant.
In fact, Westwin is in talks with the Pentagon about supplying nickel for military drones and other defense technologies, emphasizing the national security importance of sourcing these materials domestically.
Expanding Into Lithium and Rare Earths
Westwin is just one of several companies fueling Oklahoma’s entry into the critical minerals market. Another major player, Stardust Power, is developing a large-scale lithium refinery that will produce 50,000 tonnes annually, enough to satisfy 20% of expected U.S. demand by the end of the decade.
This lithium facility will partly run on Oklahoma’s abundant wind energy, reinforcing the state’s role in the clean energy transition.
Japanese conglomerate Sumitomo has already entered into a preliminary deal to purchase part of Stardust’s output, integrating Oklahoma further into the global minerals supply chain.
Meanwhile, USA Rare Earth plans to establish a magnet manufacturing plant in the state, capable of producing enough material to support over 400,000 electric vehicles per year.
These magnets are essential to EVs and defense technologies, and with China imposing restrictions on rare earth exports, domestic production has become a top priority.
Why Investors Are Eyeing Oklahoma
Though it lacks significant natural deposits, Oklahoma offers compelling advantages for investors in mineral processing. Its central U.S. location, access to rail lines, highways, and a Mississippi River port, make it ideal for logistics and distribution.
The state further boosts its appeal with tax incentives, rebates, and a skilled workforce grounded in traditional energy sectors. A streamlined regulatory system, often described as a “one phone call state,” provides a business-friendly environment for companies looking to scale quickly.
Several tech-focused recycling companies—such as Green Li-ion, Blue Whale Materials, and Natural Evolution—have also established operations in the state. These firms are focused on recycling lithium-ion batteries and electronic waste, cementing Oklahoma’s role in the circular economy for critical minerals.
Facing Roadblocks and Building Resilience
Despite its momentum, Oklahoma faces notable hurdles. Chief among them is the state’s education system, currently ranked 48th nationally, which could hinder the recruitment of top-tier technical talent.
To address this, state leaders are implementing a school voucher system to foster competition and draw more families to the region.
In addition, some economic development efforts have faced setbacks—most notably, Tesla supplier Panasonic choosing neighboring Kansas over Oklahoma for a major battery facility.
Nevertheless, optimism remains strong. Governor Kevin Stitt has made it clear that Oklahoma is aiming high, determined to position the state at the heart of America’s mineral independence strategy.
A National Push for Mineral Sovereignty
Oklahoma’s progress is part of a broader initiative across the U.S. and Canada to lessen dependence on Chinese-controlled mineral supply chains.
Programs like the federal FAST-41 initiative are helping to fast-track permitting and infrastructure development for critical mineral projects.
Internationally, nations including Japan and G7 members are forming new agreements to diversify mineral sourcing, reinforcing the global trend toward supply chain resilience.
As the U.S. accelerates investments in mineral extraction, processing, and recycling, Oklahoma is positioning itself as a cornerstone of this national effort—providing reliable domestic sources for materials essential to clean energy and defense.
With rising investments, strong government support, and growing international partnerships, Oklahoma is rapidly evolving into a key player in America’s critical minerals landscape.
From nickel and lithium refining to rare earth magnet production and battery recycling, the state is laying the groundwork for long-term economic transformation and mineral independence.
Despite challenges, Oklahoma’s proactive strategies and infrastructure advantages are fueling its ascent as a central hub in the domestic and global critical mineral supply chain.