Vulcan Elements, a Durham, N.C.-based maker of rare-earth magnets, raised $65 million in Series A funding at a $250 million valuation. Altimeter led the round, joined by One Investment Management.
Why it’s the BFD: 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.
Zoom in: Vulcan says it plans to supply magnets for every branch of the U.S. military, and that its current products meet requirements for everything from “drones and semiconductor fabrication equipment to hard disk drives, robotics, and automotive applications.”
The bottom line: “China’s recent restrictions/crackdowns have spooked defense players and pushed supply chain discussions to the fore, much like how COVID did for the average Joe.” — Colin Demarest, Axios Future of Defense
