Rare-Earth Magnet Startups Vulcan Elements, ReElement Technologies Seal $1.4 Billion Deal With Trump Administration

Two startups aiming to produce an American supply of rare-earth magnets have sealed a $1.4 billion deal with the U.S. government and private investors. It is the latest sign that the Trump administration is moving to build out a domestic rare-earths supply chain and thwart China’s sector dominance—and willing to pay large sums for it.

Led by Vulcan Elements, the deal involves a $620 million loan from the Defense Department’s Office of Strategic Capital to build and operate a U.S. magnet facility capable of producing 10,000 metric tons of magnets each year, the company said Monday. The Commerce Department is chipping in $50 million and private investors are putting in another $550 million.