Pentagon Lends $700M to Expand US Rare-Earth Magnet Output

WASHINGTON - The Department of Defense approved a conditional $700 million loan package to scale up domestic production of neodymium-iron-boron (NdFeB) rare-earth magnets, which are used in military systems, electric vehicles and wind turbines.
The financing allocates $620 million to Vulcan Elements Inc. and $80 million to ReElement Technologies Corp.; the Department of Commerce will take a $50 million equity stake in Vulcan. Officials say the funds could enable the two companies to produce as much as 10,000 metric tons of magnet material over the next several years.
ReElement specializes in separating and refining rare-earth elements from mined concentrates, industrial waste and recycled feedstocks, producing oxides that are precursors for metal alloy and magnet manufacturing. Vulcan supplies finished magnets for defense and commercial use.
The package is part of a broader U.S. strategy to diversify and secure critical-material supply chains and to reduce reliance on China’s dominant role in rare-earth processing and magnet production.