The government invests in Vulcan Elements and ReElement Technologies to boost independence in rare earth components.
The U.S. government is reaffirming its commitment to expanding national capabilities in the extraction and processing of critical raw materials. The Department of Commerce plans to acquire a $50 million stake in Vulcan Elements. The North Carolina-based manufacturer of rare earth magnets will use the funds to acquire equipment for producing these vital components, according to a press release from the department. The agreement is still preliminary.
Meanwhile, the Department of Defense will provide $620 million in loans to expand production capacity through the construction of a new factory, supplemented by $550 million in private capital. The company’s press release states that the planned annual production capacity will reach 10,000 tons.
Vulcan Elements is working closely with its partner, ReElement Technologies, to develop the entire value chain from mine to magnet. ReElement, based in Indiana, operates a rare earth refinery capable of processing both ores and recycled materials. To expand its production, ReElement will receive $80 million from the Office of Strategic Capital, which is affiliated with the U.S. Department of Defense, matched by an equal amount of private capital.
Read more: Last July, the Pentagon’s investment in U.S. rare earth company MP Materials made headlines.
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