Mentioned:
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The Department of War is putting up more than a billion dollars to change the future of rare earth magnet production in America.
What’s happening:
- Vulcan Elements has been awarded $620M USD in direct loans from the United States Department of War to accelerate the build out of a fully domestic supply chain for rare earth magnets in America
Why it matters:
- The United States Department of War has committed a total of $1.4B USD to funding to both Vulcan Elements and rare earth processing company ReElement Technologies who is a subsidiary of American Resources Corporation (NASDAQ: AREC) in order to develop domestic magnet capacity of 10,000 metric tonnes annually
Going deeper:
- The United States Department of War is providing the loans through the Office of Strategic Capital and The United States Department of Commerce is also receiving a $50M USD equity stake in Vulcan Elements as part of the new funding commitments from the federal government
- Vulcan Elements previously made waves when they raised a $65M USD Series A financing round which was led by legendary Silicon Valley technology investor Brad Gerstner’s Altimeter Capital
The intrigue:
- Vulcan Elements also previously struck a notable supply deal with Energy Fuels (NYSE: UUUU) to secure both light and heavy rare earth oxides that are produced in the United States of America
