The U.S. Rare Earth Magnet Industry welcomes new developments as Vulcan Elements, an American rare earth magnet manufacturer, announced on Tuesday, November 18, that they will invest $1 billion to build a factory in North Carolina, with an annual production capacity of 10,000 metric tons of magnets to supply the U.S. electronics and military industries.
The factory will be located in Benson, about 30 miles (48 kilometers) from the state capital, Raleigh, with partial funding provided by the Pentagon. The magnets produced at this facility can convert electricity into power for use in electric vehicles, smartphones, fighter jets, radars, and thousands of other military equipments and consumer electronic products, reducing America’s reliance on rare earths from China.
In August this year, Vulcan Elements signed a “low-cost” rare earth oxide supply agreement with ReElement Technologies, a key mineral extraction company. These oxides need to be converted to metals before being used in magnet production. The Benson plant will carry out the metalizing process.
John Maslin, CEO of Vulcan Elements, stated that the goal is to produce 10,000 metric tons of magnets annually, with the majority of production planned to start before 2027, nearly equivalent to the production capacity of MP Materials’ magnet factory in Texas.
Maslin mentioned that the choice of the new factory location in North Carolina’s Research Triangle, near renowned universities, laboratories, and military facilities, was primarily based on economic incentives and local engineering talent, making it well-suited to attract doctoral candidates, engineers, and related industry professionals.
Maslin added that Vulcan Elements’ magnet technology was developed by a co-founder and is not expected to encounter any patent issues.
The North Carolina government estimates that the factory could bring about $2.6 billion in economic benefits to the local area. If this target is achieved, Vulcan Elements could receive a $17.6 million grant from the state.
North Carolina Governor Josh Stein stated on Tuesday that this new factory, spanning a million square feet, would become the largest magnet factory outside of China.
Vulcan Elements is a rare earth magnet production company established two years ago. CEO Maslin expressed the company’s ambition to become a major U.S. rare earth magnet producer, with this expansion expected to create 1,000 job opportunities locally.
The factory received a direct loan of $620 million from the Pentagon and $550 million in private funding.
Vulcan Elements also operates a pilot plant in Durham, North Carolina, with a capacity of 10 metric tons, where the first batch of magnets has been produced for military and commercial customers. This plant is about an hour’s drive from Benson.
The United States was once the world’s largest magnet manufacturer, but this technology gradually faded in America during the 20th century (1901 to 2000). This expansion is one of Washington’s policies to break free from the rare earth supply chain in China.
Currently, China accounts for 94% of the global supply. In negotiations between the U.S. and China, the rare earth magnets are used as a bargaining chip by the Chinese Communist Party.
(This article references reports from Reuters and Bloomberg.)