Vulcan Elements Secures $1.4 Billion Partnership to Boost U.S. Rare Earth Magnet Production

New updates have been reported about Vulcan Elements (PC:VULCA)

Vulcan Elements has announced a significant $1.4 billion partnership with the United States Government and ReElement Technologies to enhance its domestic rare earth magnet supply chain. This collaboration aims to establish a 100% vertically-integrated production process entirely within the U.S., marking a pivotal step towards strengthening national security and economic growth. Central to this initiative is Vulcan Elements’ plan to construct a 10,000 metric tonne magnet facility, supported by a $620 million Direct Loan from the Department of War’s Office of Strategic Capital, $50 million in federal incentives from the Department of Commerce under the CHIPS and Science Act, and $550 million from private investors.

The partnership will also see ReElement Technologies expanding its recycling and processing capabilities, financed by an $80 million Direct Loan and matched private capital. The Department of War will receive warrants in both companies, while the Department of Commerce will secure $50 million in equity in Vulcan Elements. This strategic move is expected to bolster the U.S. supply chain for critical defense and technology sectors, with Vulcan Elements already delivering high-performance magnets to key industries. CEO John Maslin emphasized the importance of this collaboration in meeting national needs, while ReElement Technologies CEO Mark Jensen highlighted the innovative and proven capabilities of the partnership. Vulcan Elements is committed to advancing technological innovation and strengthening the domestic manufacturing workforce, ensuring a reliable supply chain for essential components in advanced machinery and electronic devices.