In a strategic move to reinforce its industrial autonomy, the United States government will become a shareholder of Vulcan Elementsa startup based in Durham, North Carolina, dedicated to production and processing of rare earth materialsessential for the manufacture of high-power magnets used in sectors such as electronics, defense and renewable energy.
State participation is part of an ambitious plan to reduce US dependence on Chinacountry that controls more than 90% of the world refining market for these metals.
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Washington will provide 620 million dollars in loans y 50 million in subsidiesresources that will translate into an equivalent shareholding within Vulcan. In parallel, a group of private investors will add $550 million to the company’s capitalstrengthening its productive capacity.
Vulcan Elements plans to expand its operations in the Research Triangle Parknear Durham, where he will install a rare earth processing plant to supply national technological and manufacturing industries.
EU will also support ReElement Technologies
The government will also support ReElement Technologiesanother American firm in the sector, with a loan of 80 million dollars. This company had already signed a supply agreement with Vulcan, which points to the consolidation of a domestic value chain.
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The Secretary of Commerce, Howard Lutnickhighlighted that This investment will accelerate the manufacturing of industrial magnets based on critical materials “within our borders.”
The movement occurs in the middle of trade tensions with Chinawhich in recent years has restricted the export of rare earths. Although a recent bilateral agreement stopped the imposition of new tariffs, Washington seeks to shield its industry from future risksbetting on a national supply of strategic metals for the 21st century economy.