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 billion in two rare earth startups, Vulcan Elements and ReElement Technologies, in a move to secure greater access to critical materials essential for both commercial technology and national defense. The investment,announced today,marks the latest effort by the trump governance to strengthen american supply chains and reduce reliance on China,which currently dominates the rare earth market.
This funding arrives as the White House prioritizes domestic 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 bolster U.S. competitiveness in a strategically crucial sector. The capital injection will enable Vulcan and ReElement to collectively increase their annual magnet production to 10,000 tons per year.
Vulcan Elements specializes in the manufacturing of magnets, while ReElement focuses on processing minerals 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.
The investment in Vulcan and ReElement follows similar stakes taken in other private companies, including another rare earths firm and chipmaker Intel, as the beginning of President Trump’s second term in January. this represents a broader strategy to onshore critical supply chains and safeguard American economic and national security interests.
