ReElement Secures $1.4B OSC Deal for 10,000 t Magnets

ReElement Technologies and Vulcan Elements have secured a significant partnership involving a $1.4 billion commitment from the U.S. Department of War’s Office of Strategic Capital (OSC). This deal was announced on November 3, 2025. The OSC will provide loans of $620 million to Vulcan Elements and $80 million to ReElement, which will be complemented by private capital.

$1.4 Billion OSC Deal Overview

The primary goal of this collaboration is to enhance domestic capabilities in rare earth element processing, including metallization and the production of neodymium iron boron (NdFeB) magnets. Both companies aim to scale up production to an impressive 10,000 metric tonnes of NdFeB magnets.

Funding Mechanism

The funding for this partnership comes from provisions of the One Big Beautiful Bill Act (OBBBA), which was enacted in July 2025. This legislation provides up to $100 billion in total OSC lending authority, specifically to support critical minerals projects.

Warrants and Shareholder Impact

• The U.S. Department of War will receive warrants in ReElement Technologies as part of the agreement.
• This arrangement may create potential dilution for shareholders in the future.

Strategic Importance of the Partnership

This initiative is vital for strengthening the U.S. supply chain for critical minerals. By establishing a fully integrated domestic magnet supply chain, the partnership addresses a significant gap in the market. Mark Jensen, CEO of ReElement, emphasized their commitment to meeting national needs through innovative refining technologies.

Similarly, John Maslin, CEO of Vulcan Elements, expressed pride in the partnership and the urgent need for the capabilities they are developing. Together, both companies are determined to drive transparency, trust, and respect while focusing on delivering solutions that enhance American industrial capacity.

Future Developments

The partnership remains contingent on completing OSC’s final diligence and successfully matching private capital. Monitoring the progress of construction and the commissioning of processing facilities will be crucial in the coming months.

In summary, the $1.4 billion deal for NdFeB magnet manufacturing by ReElement and Vulcan Elements marks a significant step towards enhancing U.S. independence in rare earth supply chains, positioning both companies as leaders in this critical industry.