Vulcan’s Series A

Originally published by Axios.

Vulcan Elements, a North Carolina-based maker of rare-earth magnets (opens in a new tab), raised $65 million in Series A funding at a $250 million valuation.

Why it matters: The U.S. is pushing to onshore production of materials critical to its national defense, plus commercial needs, rather than relying on China.

Rare-earth magnets also have been a bone of contention in U.S.-China trade talks (opens in a new tab).

What they’re saying: “We have contracts with every branch of the military already, Navy, Army and Air Force, and we’re … doing initial deliveries on one of those contracts this month,” Vulcan CEO John Maslin told Axios.

“The picks and shovels of reindustrialization (opens in a new tab)? The picks and shovels of the 21st century technology race? Chips, batteries and magnets. These magnets are going exponential in defense applications,” he said.

“Think drone technologies; think about the president’s executive order on unleashing drone dominance. We need a lot of additional rare-earth magnets.”

Zoom in: Altimeter led the funding round, joined by One Investment Management.

The bottom line: Beijing’s recent crackdowns have spooked defense players and pushed supply chain discussions (opens in a new tab) to the fore, much like how COVID-19 did for the average Joe.