Highlights

• North Carolina-based Vulcan Elements signs five-year deal with ReElement Technologies to secure domestic rare earth oxide supply starting in 2026.
• Partners aim to make US magnet production competitive by using an innovative chromatography process for rare earth separation from recycled electronics.
• The partnership represents a bold bet on US rare earth independence, with potential to challenge China's current market control.

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Vulcan Elements (opens in a new tab) a North Carolina-based privately held magnet manufacturer founded in 2023, has signed a five-year deal with Indiana-based ReElement Technologies to secure a domestic supply of rare earth oxides starting in 2026. The partners say deliveries will reach “thousands of metric tons annually,” priced significantly below the U.S. Department of Defense’s recently announced $110/kg price floor for neodymium and praseodymium.

The Pitch

ReElement, using a Purdue-licensed chromatography process instead of solvent extraction, claims it can profitably separate REEs at scale from recycled electronics and mine feed. Vulcan, aiming to establish itself as a domestic magnet manufacturer, argues the economics will finally make U.S. magnets competitive against China.

Rare Earth Exchanges recently interviewed the CEO of ReElement Technologies and American Resources Corporation (NASDAQ: AREC), and that video will be uploaded to YouTube soon.  (opens in a new tab)CEO Mark Jensen (opens in a new tab) has a can-do attitude, expertise, and drive that should not be underestimated. He has big, audacious goals which he just may achieve—but there are critics who point out he still has a lot to prove.

Such critics would argue that when it comes to ReElement Technologies and Vulcan Elements, retail investors should be pressing at least two hard questions:

1. Scale and Proof: Has Vulcan actually produced rare earth magnets at commercial scale? Public disclosures suggest it is still in the build-out phase, with no evidence of sustained high-volume magnet shipments.
2. ReElement’s Capacity: Has ReElement ever separated “thousands of metric tons” of rare earths, whether from recycling or mined feedstock? So far, its chromatography technology has only been demonstrated at pilot scale. Can it leap from lab to industrial plant in time for 2026 deliveries?

Benchmarking Against Proven Players

MP Materials (U.S.)

Runs the Mountain Pass mine in California and supplies significant NdPr oxide; still building downstream magnet production in Texas. Backed by DoD with a $110/kg floor price to stabilize revenue. Proven miner—just starting to prove processing--unproven magnet maker.

Lynas Rare Earths (Australia/Malaysia)

Produces ~20,000 t REO annually, including NdPr, with a long track record of consistent output. Currently expanding capacity and exploring downstream magnet ventures in the U.S. Proven producer; moving downstream cautiously.

Vulcan & ReElement (U.S.)

Announce future volumes of “thousands of tons” with below-market pricing, but neither has demonstrated sustained commercial production in magnets (Vulcan) or separations (ReElement). Unproven at scale; bold promises.

Investor Takeaway

This deal highlights both the promise and the peril of America’s push for rare earth independence. If ReElement delivers on its thousand-ton ambitions and Vulcan proves it can turn oxides into magnets, the U.S. could finally chip away at China’s dominance. But until commercial volumes are demonstrated, this remains more a bold bet than a bankable reality.

Retail investors should ask: are we looking at the dawn of a viable U.S. magnet supply chain, or another round of untested claims dressed up as strategic breakthroughs? Keep an eye out, as CEO Jensen and team are ambitious.

Sources: Reuters (Ernest Scheyder, Aug. 18, 2025); Discovery Alert (John Zadeh, Aug. 19, 2025).

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