Durham-based Vulcan Elements Announces $1.4 Billion Deal With U.S. Government
Yesterday, Vulcan Elements announced a $1.5 billion partnership with the U.S. Government and ReElement Technologies to scale Vulcan Elements and ReElement Technology 100% vertically-integrated domestic rare earth magnet supply chain. The partnership shows that America can produce rare earth magnets, entirely on U.S. soil. Since the beginning, Vulcan Elements’ mission has been to create a domestic rare earth magnet solution to propel the United States into the 21st Century.
Secretary of Commerce Howard Lutnick added: “Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers. We are laser-focused on bringing critical mineral and rare earth manufacturing back home, ensuring America’s supply chain is strong, secure and perfectly reliable.”
Key features of the partnership:
Vulcan Elements will build, commission and operate a 10,000 metric tone magnet facility in the United States.
Vulcan Elements and ReElement Technologies will scale their 100% vertically-integrated, domestic magnet supply chain, which is already operating today, to enable 10,000 tonnes of annual magnet production—with a focus on recycling end-of-life magnets and electronic waste.
Vulcan Elements’ expansion to 10,000 tonnes of production capacity will be financed by a $620 million Direct Loan from the Department of War’s Office of Strategic Capital, $50 million of federal incentives from the Department of Commerce under the CHIPS and Science Act, and $550 million in private capital.
ReElement Technologies’ expansion of its recycling and processing capabilities will be financed by an $80 million Direct Loan from the Office of Strategic Capital, matched by private capital.
The Department of War will receive warrants in both Vulcan Elements and ReElement Technologies. The Department of Commerce will receive $50 million of equity in Vulcan Elements.
The result of this partnership is a resilient, end-to-end U.S. supply chain that delivers with speed, certainty, and scale for customers, and provides security and resilience for our nation’s most important technologies and industries.
“As a former Navy officer, I am honored by the trust that the American government and American people have placed in Vulcan Elements,” said Vulcan Elements CEO John Maslin. “Now more than ever, we remain focused on execution and performance, so that we can deliver a capability that the nation urgently needs. Vulcan Elements and ReElement Technologies already have a record of strong collaboration, and I look forward to continuing to work together as we move forward into this next phase of our partnership.”
ReElement Technologies CEO Mark Jensen added: “ReElement Technologies and Vulcan Elements are natural partners. Our capabilities are innovative and proven. Our teams draw on the best talent across government and industry. And our companies already have a deep record of principles-based collaboration. With support from the United States Government, we are positioned to become a solution that secures America’s fundamental supply chains.”
Vulcan Elements is in ongoing discussions with the Office of Strategic Capital and the Department of Commerce’s CHIPS Program Office to finalize diligence requirements.
