US Government Backs Rare-Earth Magnet Startup With $1.4 Billion to Counter China

The U.S. government announced a $1.4 billion partnership Monday with Vulcan Elements and ReElement Technologies to build a domestic rare-earth magnet supply chain, marking one of the Trump administration’s most significant investments in reducing America’s dependence on Chinese critical minerals. The deal includes a $620 million direct loan from the Department of War’s Office of Strategic Capital to North Carolina–based Vulcan Elements, which will build and operate a facility capable of producing 10,000 metric tons of magnets annually in the United States. In return, the Commerce Department will receive $50 million in equity in Vulcan Elements, and the Department of War will receive warrants in both companies, granting it the right to buy shares at a preset price.

Author: John Carney

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