Pentagon lends $700 million to Vulcan, ReElement for rare earth magnets
The US Department of Defense agreed to lend $700 million to producers of rare earth magnets in a bid to increase domestic production of materials used in consumer electronics and weapons.
The conditional loan package is made up of $620 million to Vulcan Elements Inc. and $80 million to ReElement Technologies Corp. to lift production of magnets made from neodymium, iron and boron, the Pentagon said in a statement Friday. The Department of Commerce will take a $50 million equity stake in Vulcan.
It’s the latest in a string of US funding as the Trump administration looks to loosen China’s grip on supply chains for key elements used in military hardware, electric vehicles and wind turbines.
With the funding, Vulcan and ReElement expect to produce as much as 10,000 metric tons of the magnet material over the next several years.
ReElement separates and refines rare earths from mined concentrate and waste or recycled materials, producing oxides that are used to make metal for magnets. Vulcan supplies magnets in the US for defense and commercial production.
(By Jacob Lorinc)
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Comments
Rusty Atwood
This is definitely a step in the right direction and more needs to done for producing all of our critical mineral and rare earth needs right here in the USA. Owner of Alaska Rare Earth LLC