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PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
The Company’s property, plant and equipment consisted of the following:
December 31,
(in thousands)20212020
Land and land improvements$7,925 $6,534 
Buildings and building improvements8,791 2,953 
Machinery and equipment61,822 22,911 
Assets under construction134,327 46,814 
Mineral rights437,376 437,654 
Property, plant and equipment650,241 516,866 
Less: Accumulated depreciation and depletion(39,629)(14,892)
Property, plant and equipment, net$610,612 $501,974 
Capitalized Costs: The Company capitalized expenditures of $138.0 million, $26.2 million and $2.8 million for the years ended December 31, 2021, 2020 and 2019, respectively, mostly related to vehicles, machinery, equipment, and assets under construction to support its Stage II optimization project and other capital projects at Mountain Pass. Interest capitalized was $0.3 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively. No interest was capitalized for the year ended December 31, 2019.
Seller-Financed Equipment Notes: In February 2021, the Company acquired equipment, including trucks and loaders, in the aggregate amount of $9.4 million, which was purchased through seller-financed equipment notes. See also Note 9, “Debt Obligations,” and Note 19, “Supplemental Cash Flow Information.”
CHP Plant: In December 2021, upon designating the Company’s natural gas-powered CHP plant fully operational, $27.2 million of CHP assets under construction were transferred to buildings and machinery and equipment in the amounts of $6.0 million and $21.2 million, respectively.
Technology Investment Agreement: In November 2020, the Company was awarded a Defense Production Act Title III technology investment agreement (“TIA”) from the Department of Defense (“DOD”) to establish domestic processing for separated light rare earth elements (this “project”) in the amount of $9.6 million. Pursuant to the terms of the TIA, the Company must utilize the funds to acquire property and equipment that will contribute to the mission of this project. Furthermore, in exchange for these funds, the Company is required to provide the DOD with periodic reporting specific to this project for up to approximately five years.
During the year ended December 31, 2021, pursuant to the TIA, the Company received $4.4 million in reimbursements from the DOD. The funds received reduced the carrying amount of certain fixed assets associated with the Company’s Stage II optimization project, which are currently included in “Assets under construction.” As of December 31, 2021, the Company is entitled to receive an additional $5.2 million from the DOD under the TIA.
Impact of Change in Estimate of ARO: As a result of a decrement to the Company’s ARO during the fourth quarter of 2021, the carrying amount of the Company’s total property, plant and equipment was reduced by $8.7 million, the majority of which pertained to buildings, machinery and equipment, and assets under construction, in the amounts of $2.0 million, $2.4 million and $3.2 million, respectively. Additionally, the Company’s depreciation expense for the year ended December 31, 2021, was reduced by $1.1 million, reflecting the excess of the decrement over the carrying amount of the related property, plant and equipment. See Note 11, “Asset Retirement and Environmental Obligations,” for further information on the decrement.
The Company’s depreciation and depletion expense were as follows:
For the year ended December 31,
(in thousands)202120202019
Depreciation expense$6,825 $4,702 $4,414 
Depletion expense(1)
$17,200 $1,961 $114 
(1)At the beginning of the fourth quarter of 2021, as a result of an updated life of mine, we revised our estimate of the remaining useful life of the mineral rights to approximately 35 years from approximately 23 years. The effect of the change in estimate was a reduction in depletion expense for the year ended December 31, 2021, of $1.5 million.
There were no impairments recognized for the years ended December 31, 2021, 2020 and 2019.