The Trump administration is taking a stake in private mineral companies again, this time in two rare earth startups pushing to ramp up production of rare earth magnets in the U.S. for semiconductors, electric vehicles, drones and jets.
Vulcan Elements and ReElement Technologies announced the $1.4 billion deal in a joint release Monday and said the government will receive equity and warrants — the right to buy common stock — as it builds out a rare earth magnet supply chain in exchange for hundreds of millions of dollars’ worth of incentives and loans.
“Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers,” Secretary of Commerce Howard Lutnick said in a statement in the companies’ release. “We are laser-focused on bringing critical mineral and rare earth manufacturing back home, ensuring America’s supply chain is strong, secure and perfectly reliable.”
The announcement is part of a growing trend the Trump administration is setting by taking partial ownership in private companies, generating significant buzz about future deals and possible risks for taxpayers and the environment. The government has already moved to take equity stakes in companies with mineral operations or plans in Nevada, California and Alaska.
