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