Vulcan Elements, a startup specializing in rare-earth magnets, has recently secured a significant $620 million contract from the U.S. Department of Defense. This contract is the first slip of a huge $1.4 billion, 15-year partnership. The U.S. government and ReElement Technologies are working in partnership to ensure a strong domestic supply of the critical magnets needed for defense applications.
Vulcan Elements to manufacture high-performance rare-earth magnets in the US. Their project, technology and financial backing has wowed the industry and garnered plenty of attention and headlines. The startup is supported by 1789 Capital, a venture capital firm co-founded by Donald Trump Jr., who joined as a partner in early 2024. This investment by 1789 Capital came about three months before Insitu was awarded the DoD contract.
The partnership with ReElement Technologies is designed to enhance domestic production capabilities, ensuring that the U.S. military has reliable access to essential materials. Vulcan Elements is rounding out the picture to be a key player in this effort. Their recent track record of winning large awards certainly demonstrates this commitment. Back in August, the company closed a big $65 million Series A funding round. Altimeter Capital had led this big round, providing the company’s continued expansion.
So it was no accident that Trump Jr.’s new business funneled a huge $300,000 in support for the conference. Both Vulcan Elements and spokespeople for 1789 Capital were adamant that Trump Jr. had no role in the contract negotiations themselves.
“He had no involvement in negotiations with the government on behalf of 1789’s portfolio companies.” – Trump Jr.’s spokesperson
This welcome clarification is in response to the increasing critical eyes on this intersection of politics and business. It follows an unusual string of tech companies funded by 1789 Capital winning federal contracts this year. According to reports, at least four other firms under the 1789 umbrella have received similar contracts.
The Financial Times was the first to report on the Pentagon’s $30 million defense contract, emphasizing the strategic importance of rare-earth magnets in military applications. These materials are essential for all advanced technologies, from smart missiles to electronics in everyday consumer devices.
Vulcan Elements is quickly developing a presence in the defense community. Prioritizing domestic production demonstrates the company’s commitment to supporting national interests by minimizing reliance on foreign suppliers for critical materials.
