Posted on 06 Nov 2025
US rare earth magnets producer Vulcan Elements and recycling company ReElement Technologies have unveiled a funding package worth $1.4 billion, Kallanish learns.
Vulcan, which currently operates a 10-tonne/year facility in Durham, North Carolina, said Monday it will build, commission, and operate a new plant in the US with a capacity of 10,000 t/y. It forms part of plans to scale its existing partnership with ReElement to 10,000 t/y of neodymium iron boron (NdFeB) magnets, with a focus on recycling end-of-life magnets and electronic waste.
The expansion of Vulcan’s capacity will be supported by a $620 million direct loan from the US Department of War, $50m of federal incentives from the Department of Commerce under the CHIPS and Science Act (which was launched in 2022 by the Biden administration), and $550m in private capital. To scale its recycling and processing capabilities, ReElement will receive an $80m direct loan from the DOW, which will also be matched by private capital.
The DOW will receive warranties in both companies, and the DOC will receive $50m of equity in Vulcan. The series of deals comes amid a US government push to secure rare earths independent from Chinese-dominated supply chains, including deals with other countries and efforts to develop domestic upstream, midstream, and downstream production.
Vulcan and ReElement finalised a commercial-scale offtake agreement in August, with ReElement providing both light and heavy rare earth oxides to Vulcan for magnet production. Vulcan inaugurated its North Carolina facility in March, while ReElement operates two plants in Indiana – a 250 t/y separation plant in Noblesville, and a 3,500 t/y refinery in Marion.
Source:Kallanish
