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| Vulcan Elements ReElement Technologies NdFeB Magnets |
Strategic Partnership to Strengthen Domestic Magnet Production
Vulcan Elements and ReElement Technologies signed a $1.4 billion agreement with the US government. This partnership aims to expand the US rare earth magnet supply chain, focusing on neodymium iron boron (NdFeB) magnets. As a result, domestic production for defense and commercial applications will significantly increase, reducing reliance on China.
Meanwhile, the Department of Commerce and Pentagon pledged financing and potential equity stakes. Vulcan will receive $50 million in federal equity, while the Department of War will hold warrants. Therefore, the initiative ensures government support aligns with national security priorities.
In contrast, the companies plan a 10,000-tonne magnet facility across multiple US states. The expansion will include recycling end-of-life magnets and electronic waste. Consequently, the vertically integrated supply chain will enhance domestic rare earth magnet availability and support advanced technology sectors, including robotics, AI, and electric vehicles.
ScrapInsight Commentary
The Vulcan-ReElement deal strengthens the US rare earth magnet supply chain and secures critical materials for defense and tech industries. Recycling initiatives may reduce dependence on imported raw materials and boost circular economy outcomes.
