US Takes Equity in $1.4B Rare-Earth Venture
The Trump administration has announced a major step to strengthen domestic production of rare-earth magnets, aiming to reduce America’s dependence on China. This effort reflects a broader strategy to secure supply chains for vital technologies.
Public-Private Partnership Details
Under a new public-private partnership valued at US$1.4 billion, the United States will collaborate with Vulcan Elements and ReElement Technologies, a subsidiary of American Resources Corporation (NASDAQ: AREC). The initiative seeks to expand production of neodymium-iron-boron (NdFeB) magnets, essential for advanced defense and tech applications.
Federal Incentives and Equity Stake
The Department of Commerce has signed a preliminary letter of intent to provide US$50 million in proposed incentives to Vulcan Elements through the CHIPS and Science Act. These funds will assist in purchasing equipment necessary for manufacturing high-performance magnets used in fighter jets, nuclear submarines, AI data centers, and semiconductor facilities.
“The Department of Commerce will receive US$50 million in equity in the company.”
Strategic Investment Overview
This initiative includes US$700 million in conditional loan commitments from the Department of Defense’s Office of Strategic Capital to both Vulcan Elements and ReElement Technologies. The move reinforces the administration’s plan to rebuild and secure domestic capabilities in critical materials and manufacturing sectors.
Follow @INN_Resource for ongoing updates on this evolving strategic partnership.
Author’s Summary
The US invests in rare-earth production via a $1.4B partnership with Vulcan Elements, securing key tech resources and reducing reliance on China through equity participation and federal loans.