The United States has dramatically accelerated its mission to establish a secure, fully domestic, and vertically integrated supply chain for rare earth magnets through a pivotal $1.4 billion collaboration between Vulcan Elements and ReElement Technologies.
This strategic, whole-of-government initiative directly addresses critical national security concerns by mitigating reliance on foreign sources for these materials, which are indispensable components in advanced defense and technology systems.
The massive partnership enables Vulcan Elements to spearhead the construction and operation of a 10,000-metric-ton magnet production facility within the United States.
Simultaneously, ReElement Technologies scales its innovative processes for recycling and refining rare earth oxides, sourcing them from end-of-life magnets and electronic waste. This combined effort creates a true “mine-to-magnet” domestic capability, securing the entire production lifecycle from raw materials recovery to final product manufacturing.
💰 Federal Funding and Strategic Equity Commitments
Federal agencies are heavily investing in this strategic industrial base expansion. The Department of Defense (DOD)’s Office of Strategic Capital commits significant financial backing, issuing $620 million in direct loans to Vulcan Elements and an additional $80 million direct loan specifically for ReElement Technologies.
Furthermore, the Department of Commerce supports the venture with $50 million in federal incentives, drawing funds from the critical CHIPS and Science Act. This total commitment is rounded out by $550 million in crucial private sector capital.
This financial structure not only provides essential growth capital but also aligns government and private sector interests through equity arrangements. The DOD will hold warrants in both Vulcan Elements and ReElement Technologies, while the Commerce Department acquires $50 million in equity within Vulcan Elements.
Secretary of Commerce Howard Lutnick underscored the urgency of the mission, stating the Department is “laser-focused” on repatriating critical mineral and rare earth manufacturing to ensure a resilient, secure, and completely reliable American supply chain.
This partnership positions the nation to strengthen manufacturing capacity for crucial magnets, directly bolstering U.S. defense capabilities and technological leadership for years to come. The leadership teams at Vulcan and ReElement have consistently emphasized the mission-driven nature of their collective efforts, demonstrating a clear commitment to delivering a capability the nation urgently requires.
