Record Loan

The US Pentagon awarded a record loan to Vulcan Elements – a rare earths company backed by Donald Trump Jr.

Context

Trump Jr. joined 1789 Capital as a partner in 2024 after the fund was founded by pro-Trump donors in 2023. In August, the venture capital firm invested in Vulcan Elements – a small startup that produces rare-earth magnets. The US has recently sought to increase domestic production of these magnets to reduce reliance on foreign suppliers.

Deal Details

Vulcan Elements received a $620M loan last month from the Defense Department as part of a larger $1.4B deal to boost magnet production. The company will work alongside partner  ReElement Technologies to increase the domestic supply of rare-earth magnets to be used in military equipment.