Vulcan Elements has formed a $1.4 billion partnership with the U.S. government and ReElement Technologies to expand a fully domestic, vertically integrated supply chain for rare earth magnets.
Boosting National Security & Defense Capabilities
Vulcan said Monday it will build and operate a 10,000-metric-ton magnet production facility in the U.S., while ReElement Technologies scales its recycling and refining of rare earth oxides from end-of-life magnets and electronic waste.
The collaboration seeks to enhance U.S. manufacturing capabilities for critical magnets, which are vital to defense and technology sectors.
How Do the DOD & Commerce Departments Back the Partnership?
The $1.4 billion initiative includes $620 million in direct loans from the Department of Defense’s Office of Strategic Capital; $50 million in federal incentives from the Department of Commerce under the CHIPS and Science Act; $550 million in private capital; and an $80 million direct loan from the Office of Strategic Capital for ReElement Technologies.
DOD will secure warrants in Vulcan Elements and ReElement Technologies. The Commerce Department will get $50 million of equity in Vulcan.
“Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers. We are laser-focused on bringing critical mineral and rare earth manufacturing back home, ensuring America’s supply chain is strong, secure and perfectly reliable,” said Secretary of Commerce Howard Lutnick.
Company Leaders on the Partnership
Vulcan Elements CEO John Maslin highlighted the mission-driven nature of the partnership.
“Now more than ever, we remain focused on execution and performance, so that we can deliver a capability that the nation urgently needs. Vulcan Elements and ReElement Technologies already have a record of strong collaboration, and I look forward to continuing to work together as we move forward into this next phase of our partnership,” Maslin said.
ReElement Technologies CEO Mark Jensen added that the collaboration positions the U.S. to secure its fundamental supply chains.
