US Commits $1.4 Billion and Targets 10,000 Metric Tonnes of Rare Earth Magnet Production by 2027

Washington D.C. – Vulcan Elements, a North Carolina-based startup, and ReElement Technologies have secured a landmark $1.4 billion partnership with the United States government to establish a fully integrated domestic supply chain for rare earth magnets, aiming for large-scale production by 2027. This significant investment, which includes substantial government backing and private capital, underscores a national push to re-industrialize and reduce reliance on foreign sources for critical materials essential to defense, technology, and economic security. The collaboration seeks to achieve an annual production capacity of 10,000 metric tonnes of rare earth magnets.The partnership involves a $620 million direct loan from the Department of War's Office of Strategic Capital to Vulcan Elements, complemented by $50 million in federal incentives from the Department of Commerce under the CHIPS and Science Act. An additional $550 million in private capital rounds out the funding, with the government receiving equity and warrants in both Vulcan Elements and ReElement Technologies. Secretary of Commerce Howard Lutnick emphasized the strategic importance, stating, "Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers."This latest development follows Vulcan Elements' $65 million Series A funding round in August 2025, led by Altimeter Capital. Brad Gerstner, Founder and CEO of Altimeter Capital, highlighted the rapid progress, tweeting, "> The re-industrialization of 🇺🇸is moving at warp speed. After leading Vulcan’s Series A just 3 months ago - we are honored to be partnering w @PeteHegseth & @howardlutnick to bring large-scale production of rare earth magnets to America in 2027." This investment valued Vulcan Elements at $250 million at the time.Pete Hegseth, identified as the Secretary of Defense, was present alongside Secretary Lutnick during the announcement, signaling high-level government commitment. Rare earth magnets are crucial components in advanced technologies, including AI data centers, electric vehicles, drones, and military platforms, with China currently dominating over 90% of the global supply chain. The initiative aims to mitigate this geopolitical vulnerability by creating a resilient, domestic alternative.Vulcan Elements, founded in 2023 by former Navy officer John Maslin and electrical engineer Piotr Kulik, focuses on manufacturing sintered neodymium iron boron (NdFeB) magnets. The company's strategy involves a vertically integrated supply chain, sourcing materials and equipment exclusively from the U.S. and allied partners to ensure complete traceability and independence from China. ReElement Technologies will expand its capabilities in recycling end-of-life magnets and processing raw materials into high-purity rare earth oxides.