US Invests $1.4 Billion in Rare Earth Startups to Boost Domestic Supply
WASHINGTON – The U.S.government,alongside private investors,is investing $1.4 billionโข in two rare earth startups, โขVulcan Elements โคand ReElement Technologies, in a move โto secure greater access to critical materials essential for both commercial technology and national defense. The investment,announced today,marksโข the latest โeffort by the trump โฃgovernance to strengthen american supply โขchains and reduce reliance on China,which currently dominates the rare earth market.
This funding arrives as the White House prioritizes โขdomestic production of materials vital to a wide range of industries, from fighter aircraft and smartphones to wind turbines. The deal underscores growing concerns about supply chain vulnerabilities and aims to bolsterโ U.S. competitiveness in a strategically crucial sector. The capital injection will enable Vulcan andโ ReElement to collectively increase their annual magnet production to 10,000 tons per year.
Vulcan Elements specializes โin the โคmanufacturingโฃ of magnets, while ReElement focuses โขon processing mineralsโค and recycling rare earths from used batteries and other products. Rare earth elements are crucial components in numerous high-tech applications,including guided missiles,drones,and nuclear submarines.โ
The investment in Vulcan and ReElement follows โขsimilar stakes taken in other private companies, including another rare earths firm and chipmaker Intel, as the beginning of President Trump’s second termโ in January. this represents a broader strategy to onshore critical supply chains and โsafeguard Americanโค economic โand national security interests.
