Vulcan Elements, a US rare earth magnet startup, and ReElement Technologies, a key mineral extraction company, have announced the signing of a five-year “low-cost” supply agreement. Starting next year, ReElement will provide Vulcan with thousands of metric tons of recycled rare earth oxide annually for the production of high-performance magnets, which can be used in fighter jets, radar systems, and consumer electronics, reducing America’s reliance on rare earths from China.
Headquartered in North Carolina, Vulcan, and based in Indiana, ReElement, signed the contract in mid-July this year. ReElement will be supplying critical minerals not produced in China.
The two companies stated that the transaction price is “significantly lower” than the $110 per kilogram base price set by the US Department of Defense in July when purchasing rare earth metals “Neodymium” and “Praseodymium” from local rare earth miner MP Materials.
John Maslin, CEO of Vulcan, stated that this transaction price allows the company to maintain competitiveness in the global market while ensuring the economic viability of each unit produced without incurring losses. These rare earth oxides can be used to manufacture rare earth metals, which are then turned into magnets for military equipment like fighter jets, radars, and consumer electronics.
Mark Jensen, CEO of ReElement, stated that over the next five years from 2026, they will supply Vulcan with thousands of metric tons of rare earth oxide annually, sourced from discarded electronic products or mines.
ReElement indicated that the company employs a processing technique called chromatography instead of the commonly used solvent extraction in the industry, enabling them to supply rare earths to Vulcan at a price below $110 per kilogram. Their technology is licensed from Purdue University.
Jensen told Reuters, “We are focused on costs. We will monitor market trends, but currently, we are more concerned about market prices rather than the base price.”
Reuters reported last month that the Trump administration is considering setting a minimum price guarantee to boost the production of key minerals in the US, sparking international attention. This information was revealed during a closed-door meeting in Washington, which both Vulcan and ReElement attended.
(Reference: Reuters)