U.S. takes stake in RTP-based maker of rare-earth magnets as part of $1.4B deal

The federal government is taking an ownership stake in a Research Triangle Park company as part of a $1.4 billion deal aimed at strengthening the nation’s domestic supply of rare-earth magnets.

2025-11-03

The U.S. Department of Commerce said Monday it has struck a preliminary agreement to receive a $50 million equity stake in RTP-based Vulcan Elements, which would expand its production capacity to manufacture, process, and produce up to 10,000 metric tons of Neodymium Iron Boron magnets over the next several years.

The expansion would be financed by a $620 million direct loan from the Pentagon’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, the company said. Indiana-based ReElement Technologies would also expand its recycling and processing capabilities under the deal, with help from an $80 million direct loan from the Pentagon, matched by private capital.

The planned incentives for Vulcan would fund equipment used for the domestic production of magnets used in commercial products such as medical devices, electric vehicles, wind turbines, computer chips, and defense applications such as fighter jets, nuclear submarines and satellites, among others. ReElement Technologies processes end-of-life magnets, electronic waste, and mined concentrates into high-purity rare earth oxides.

“Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers,” U.S. Secretary of Commerce Howard Lutnick said in a statement. “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.”

Vulcan Elements’ magnets have already been delivered to customers in the defense and technology sectors. Vulcan and ReElement have worked together to help strengthen domestic supply of rare-earth magnets to build security around some of the nation’s most important sectors, executives said.

“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 Chief Executive John Maslin said in a statement. The company said it was in negotiations with federal officials to finalize the deal.