US, Vulcan Elements, ReElement Launch $1.4B Rare Earth Magnet Supply Partnership

The U.S. government has partnered with Vulcan Elements and ReElement Technologies in a $1.4 billion initiative to scale domestic production of rare earth magnets, critical for defense and commercial applications. This collaboration is backed by substantial financing, including a $620 million direct loan to Vulcan Elements and $80 million to ReElement Technologies from the Pentagon's Office of Strategic Capital, alongside private capital investments and a $50 million equity stake by the Department of Commerce. Vulcan Elements will build and operate a 10,000-metric-ton magnet facility in Durham, North Carolina, focusing on producing neodymium iron boron (NdFeB) magnets and recycling end-of-life magnets and electronic waste. The partnership marks a strategic shift towards securing the U.S. supply chain for essential rare earth materials, reducing dependence on China and enhancing national security. Government involvement includes warrant positions in both companies, aligning federal interests with private sector execution and ensuring accountability. Industry leaders emphasize the initiative's national security importance and its role in fulfilling a critical supply chain need for advanced technologies, including electric vehicles, defense platforms, and AI infrastructure.