ReElement Technologies Corporation, a leading U.S. innovator in rare earth and critical mineral refining, has entered a $1.4 billion partnership with the U.S. Department of War’s Office of Strategic Capital (OSC) and Vulcan Elements to build a fully integrated domestic rare earth magnet supply chain.

The agreement includes two OSC-backed loans, matched by private investment: $620 million to Vulcan Elements and $80 million to ReElement Technologies. The loans are intended to support advanced rare earth separation, metallization, and magnet manufacturing facilities across the United States.

The partnership aims to scale U.S. production of neodymium-iron-boron (NdFeB) magnets to 10,000 metric tonnes per year, significantly reducing the nation’s dependence on foreign magnet imports. NdFeB magnets are critical components in electric vehicles, wind turbines, defense systems, and other advanced technologies.

Under the terms of the partnership, the U.S. Department of War will also receive warrants in ReElement Technologies Corporation, strengthening the agency’s long-term investment and oversight in the program.

The OSC’s loan funding comes from the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. The Act provides up to $100 billion in total lending authority for critical minerals and related projects, marking one of the largest federal investments in U.S. industrial policy in recent history.

The collaboration expands on ReElement’s ongoing relationship with Vulcan Elements, combining ReElement’s midstream refining technology with Vulcan’s metallization and magnet manufacturing capabilities. Together, the companies plan to deliver a vertically integrated supply chain capable of processing raw materials into finished magnets entirely within U.S. borders.

Executives from both companies described the agreement as a crucial step in restoring American control over strategic materials and ensuring industrial independence. They emphasized their shared commitment to government collaboration, transparency, and innovation, which they say will drive secure and sustainable production at scale.

Since the formation of their partnership, ReElement and Vulcan have operated under four guiding principles:

1. Prioritizing U.S. national interests above all else.
2. Collaborating with transparency and mutual trust.
3. Ensuring fair returns on public and private investment.
4. Advancing innovation to strengthen U.S. industrial leadership.
5. The companies said these principles have shaped a resilient, end-to-end domestic supply chain that delivers “speed, certainty, and scale” to customers while bolstering national security and economic stability.
6. The newly announced funding and loan structure will allow both companies to expand manufacturing capabilities, accelerate project timelines, and strengthen their operational base.

Discussions are ongoing between the partners and the Office of Strategic Capital to complete final diligence and formalize the agreement’s structure. Once finalized, the partnership is expected to mark one of the largest federal-private cooperative efforts in the rare earth and critical minerals sector to date.

If successful, the initiative could significantly narrow the United States’ rare earth magnet supply gap, reduce reliance on Chinese imports, and establish a sustainable domestic foundation for the materials vital to the clean energy transition, defense manufacturing, and next-generation technology industries.