US EditionTrump Administration and Private Investors Sign Off on $1.4 Billion Deal with Rare Earth Startups
The $1.4 billion investment will boost U.S. rare earth magnet production to 10,000 tonnes annually to reduce reliance on China, vital for defense and tech industries.
- The Trump administration and private investors struck a $1.4 billion deal with Vulcan Elements and ReElement Technologies to scale U.S. rare earth materials vital for high-tech and military use.
- China's market dominance—nearly 70% of mining and roughly 90% of processing—prompted action as export restrictions before Xi Jinping and Donald Trump met last week pressured U.S. officials to secure supplies.
- The financing mixes public and private funds, including a $620 million Department of Defense loan, $50 million from Commerce, and $550 million in private capital, enabling Vulcan Elements and ReElement Technologies to boost annual magnet production to 10,000 tonnes.
- It increases U.S. capability to supply strategic materials for defense and technology, strengthening production for jets and drones while making the government MP Materials' largest shareholder and drawing skepticism from economists and former government officials.
- The Department of Defense's prior $400 million investment in MP Materials shows continued government involvement amid private demand and skepticism, following a $500 million MP‑Apple deal.
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69 Articles
Carolina Journal
Carolina Coast OnlineDurham rare-earth start-up receives $1.4B federal investment
On Nov. 3, Vulcan Elements, a Durham-based start-up specializing in rare-earth minerals, announced a $1.4 billion partnership with the US government. The investments will fund the construction, commission, and operation of a 10,000 metric ton magnet facility. “This is more crony capitalism, where taxpayer dollars are used to benefit politically connected corporations,” Brian Balfour, VP of research at the John Locke Foundation, told the Carolin…
Why USA Rare Earth Stock Soared, Slumped, and Ended Up 13% Higher in October
Key PointsUSA Rare Earth struck a deal to secure its future production of magnets. Long-term, the company aims to source its own supply of rare-earth materials; that would be a big help to America in securing a domestic rare-earth magnet supply. 10 stocks we like better than USA Rare Earth › Welcome to the wild ride that is USA Rare Earth (NASDAQ: USAR) stock. The stock rose 13.1% in October, according to data provided by S&P Global Market Intel…
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Trump Administration partners with rare earth startups in $1.4 billion deal
WASHINGTON, D.C. - The Trump Administration, along with private investors, announced a new partnership with two rare earth startups to bolster domestic production of rare earth magnets.
Associated Press News
Trump administration and private investors sign off on $1.4 billion deal with rare earth startups
The Trump administration and private investors are partnering with two rare earth startups in a $1.4 billion deal to scale up the nation’s access to materials and technology that is crucial for producing an array of high-tech goods and military equipment.
The Trump administration and private investors are collaborating with two rare-earth startups in a $1.4 billion agreement to increase the country's access to materials and technology crucial to the production of a variety of high-tech products and military equipment.
US Takes Equity in $1.4B Rare-Earth Venture
The Trump administration continues its push to rebuild domestic supply chains for critical technologies through a US$1.4 billion public-private partnership with Vulcan Elements and ReElement Technologies -a subsidiary of American Resources Corporation (NASDAQ:AREC)- to expand US production of rare earth magnets.The Department of Commerce’s announced that it signed a preliminary letter of intent to provide US$50 million in proposed incentives to …
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