Vulcan Elements Lands Major Pentagon Contract Amid Rare-Earth Supply Push

A rare-earth magnets startup has secured a massive new government contract. Vulcan Elements announced a $620 million deal with the U.S. Department of Defense. The Financial Times first reported the news.The contract is part of a larger $1.4 billion partnership. It involves the U.S. government and ReElement Technologies. The goal is to expand America’s domestic magnet supply chain.

Backing from Firm Linked to Trump Jr. Draws Scrutiny

The startup is backed by venture firm 1789 Capital. Donald Trump Jr. joined that firm as a partner in 2024. According to Bloomberg, 1789 Capital invested in Vulcan Elements roughly three months ago.This Pentagon contract is reportedly its largest ever. It was issued by the Department of Defense’s Office of Strategic Capital. The Financial Times notes several 1789 Capital portfolio companies have won government deals this year.A spokesperson for Trump Jr. denied any involvement. They stated he had no role in negotiations for this contract. Vulcan Elements also denied his involvement in the process.

Contract Fuels Critical Drive for Domestic Production

The deal highlights a urgent national priority. The U.S. is aggressively working to reduce reliance on foreign rare-earth elements. These materials are vital for advanced weapons, electric vehicles, and consumer electronics.Establishing a secure domestic supply is a key defense strategy. This contract provides significant capital to scale American production capacity. It represents a major step toward technological independence.

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This Vulcan Elements Pentagon contract signals a powerful shift. It directs substantial funds toward securing a critical industrial base. The move strengthens U.S. resilience in a strategically vital sector.

Dropping this nugget your way

What is the total value of the government partnership?

The total partnership is worth $1.4 billion. The $620 million contract for Vulcan Elements is a major part of that larger initiative. The collaboration includes ReElement Technologies.

Did Donald Trump Jr. help secure this deal?

Officials from both sides deny his involvement. A spokesperson for Trump Jr. said he had no role in negotiations. Vulcan Elements also stated he was not involved in the contract process.

Why are rare-earth magnets so important?

They are essential for modern technology and defense. These magnets are used in everything from fighter jets to electric car motors. China currently dominates the global supply chain, creating a strategic vulnerability.

What is the Office of Strategic Capital?

It is a Pentagon office created to finance critical technologies. Its mission is to leverage private capital for national security needs. This contract is reportedly its largest financial award to date.

Which other companies has 1789 Capital backed?

The venture firm is also an investor in SpaceX and Anduril. Both companies are long-time contractors for the U.S. government. The firm focuses on technology and defense-related startups.