Vulcan Elements, a North Carolina-based maker of rare-earth magnets, 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.
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? 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 to the fore, much like how COVID-19 did for the average Joe.
