US Bolsters Rare Earth Supply Chain with $1.4 Billion Deal

The Trump administration, in collaboration with private investors, is injecting $1.4 billion into two rare earth startups, Vulcan Elements and ReElement Technologies. This substantial investment seeks to amplify America's production capabilities for crucial materials and technology vital for high-tech and defense applications.

This initiative is part of a broader strategy to fortify the US supply chain in an industry significantly controlled by China. Vulcan Elements focuses on creating rare earth magnets, while ReElement processes rare earth mineral ores and recycles batteries.

The deal also involves federal and private funding sources including a $620 million loan from the Department of Defense. This strategic financial boost comes amid international trade negotiations, following recent tariff adjustments between the US and China.