RTP-based Vulcan Elements Lands $1.4B Federal Partnership

Research Triangle Park startup Vulcan Elements says it has secured a $1.4 billion partnership with the U.S. Department of Defense (DoD) and ReElement Technologies to build out a fully domestic, vertically integrated rare-earth magnet supply chain - an industry long dominated by China.

The deal aims to lift U.S. output to 10,000 metric tons of magnets per year for defense and high-tech manufacturing.

What’s in the Deal

• Financing: Vulcan’s expansion is slated to be backed by a $620M direct loan from DoD’s Office of Strategic Capital (OSC), $50M in incentives from the Department of Commerce under the CHIPS and Science Act, and about $550M in private capital. ReElement plans an $80M OSC direct loan matched by private funds to expand recycling and refining. (Commerce described its support as a CHIPS letter of intent.)
• Capacity & scope: The companies target 10,000 tons/year of NdFeB magnet output, with a strong emphasis on recycling end-of-life magnets and e-waste into high-purity oxides and metals.
• Federal stakes: The government will receive equity/warrants as part of the package, reflecting a broader industrial-policy push to on-shore critical mineral supply chains.

Why It Matters for South Durham & the Triangle

• Local footprint: Vulcan is headquartered in Research Triangle Park and has begun commercial/R&D operations here, positioning Durham as a node in a growing U.S. magnet ecosystem that sits alongside the Triangle’s semiconductor and battery clusters. Local siting for the large-scale factory has not been announced.
• Jobs & suppliers: Hiring targets and supplier onboarding are still to come, but a project of this scale could create opportunities for area machine shops, advanced-materials vendors, and logistics firms if North Carolina lands major production.

What are NdFeB magnets?

NdFeB stands for neodymium-iron-boron. These are the strongest commercial permanent magnets we can make today. Their crystal structure (roughly Nd₂Fe₁₄B) gives them extremely high magnetic strength for their size, which is why they show up anywhere you want lots of torque or tight, efficient motors.

Why They Matter

• Power-dense: You get big magnetic force from a small, light magnet - great for EV motors, drones, robots, wind-turbine generators, hard-drive actuators, speakers, and defense systems.
• Efficiency gains: Stronger magnets let manufacturers shrink motors, cut weight, and improve battery range.

How They’re Made

• Sintered NdFeB: powdered alloy is pressed and heat-treated to a dense block, then cut and coated. This yields the highest performance.
• Bonded NdFeB: magnetic powder mixed with a polymer and molded - easier shapes but lower strength.

Grades & Temperature

• You’ll see grades like N35 to N52 (higher ≈ stronger at room temp).
• Heat is the enemy. Standard grades work to ~80 °C (176 °F); special “H/SH/UH/EH” grades with additives like dysprosium/terbium can handle 150–200 °C but cost more.

Practical Quirks

• Brittle & chip-prone: They’re ceramics in behavior - usually nickel or epoxy coated to prevent corrosion.
• Corrosion sensitive: Especially in humid/salty environments without good coatings.
• Safety: Big NdFeB magnets can snap together and pinch, damage electronics/credit cards, and may interfere with pacemakers - handle with care.

Supply-Chain Situation

NdFeB magnets need rare-earth elements (mainly neodymium, plus dysprosium/terbium for high-temp use). Mining/refining and magnet-making have been concentrated overseas. A domestic, recycle-to-metals-to-magnets pipeline - like the Vulcan/ReElement plan - aims to onshore that capability and reduce dependence on imports.

How the Supply Chain Fits Together

• ReElement Technologies: processes end-of-life magnets, e-waste, and mined concentrates into high-purity, separated rare-earth oxides.
• Vulcan Elements: reduces those oxides into high-purity rare-earth metals and manufactures NdFeB permanent magnets used in everything from defense platforms to EVs, robotics, and wind turbines.

CHIPS 101: Why a Semiconductor Law Shows Up in a Magnet Deal

What the CHIPS Act is: Congress passed - and President Joe Biden signed - the bipartisan CHIPS and Science Act on Aug. 9, 2022. The law provides about $52.7B over five years to rebuild the U.S. semiconductor ecosystem, including $39B in manufacturing incentives, ~$11B for R&D (e.g., the National Semiconductor Technology Center), and a 25% investment tax credit for eligible semiconductor manufacturing and equipment. The Department of Commerce’s CHIPS Program Office administers most funding. Core goal: strengthen domestic chip production and its materials/equipment supply chains for economic and national security.

Why it’s relevant here: Although CHIPS is centered on chips, Commerce can support supply-chain-critical inputs that help secure domestic semiconductor manufacturing. In this case, Commerce issued a letter of intent for $50M in CHIPS incentives tied to Vulcan’s magnet equipment—paired with DoD financing to on-shore a strategic component used across advanced electronics and defense systems.

What’s Next

• Diligence & siting: Vulcan says it’s in ongoing discussions with OSC and the CHIPS Program Office to finalize diligence. Factory location, construction schedule, and job counts have not been announced.

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