Rare Earth Magnet Startupโค Vulcan Elements Wins $620 Million โDefense Contract
WASHINGTON D.C. – Vulcan โฃElements, a startup focused on producing rare-earth magnets, has been awarded a $620 million contract from the U.S. Departmentโข of Defense, the Financial Times reported today. The deal is part of a broaderโ $1.4 billion public-private partnership with ReElement Technologies aimed at strengthening the โฃdomestic supply chain for these critical materials.
Vulcan Elements โฃreceived investment from 1789 Capital, a venture capital firm where Donald Trump Jr. is a partner, approximately three months ago, according โto Bloomberg. Trump โJr. joined 1789 Capital inโฃ 2024. the company previously announcedโ a $65 million series A funding round in August, led by Altimeter โCapital.
Rare-earth magnets are essentialโ components in a wide range of defense technologies, including missile guidance systems, radar, โคand electric vehicles. The U.S. currently relies heavily โขon foreign sources, particularly china, for these materials, โcreating a national security vulnerability. This contractโค aims to address that reliance by โestablishing โa secure, domestic source.
The $620 million award represents the largest contractโค ever issued by the Pentagon‘s office of Strategicโค Capital. The Financial Times noted that at least four โคother companies backed by 1789 Capital have secured goverment contracts this year. 1789 Capital also has investments in established โฃdefense contractors โSpaceX and Anduril.
Both Vulcan Elements and a spokesperson for Donald Trump Jr. have denied any involvement by Trump Jr. in theโ contract negotiations. The spokesperson stated that Trump Jr. “hadโค no involvement in negotiations with the government on behalf โคof 1789’s portfolioโค companies.”
