Wedoany.com Report-Aug. 19, Vulcan Elements, a North Carolina-based manufacturer of rare earth magnets, has entered into an agreement with ReElement Technologies, based in Indiana, to procure critical minerals sourced from outside China. The contract, finalized in mid-July, ensures a steady supply of rare earth oxides for Vulcan, which are essential for producing magnets used in applications such as fighter jets, radar systems, and consumer electronics.

Both companies, which are privately held, did not disclose specific financial details but noted that the pricing is "significantly below" the $110 per kilogram floor set by the U.S. Department of Defense for MP Materials in a recent agreement. Vulcan’s CEO, John Maslin, stated: "This pricing will enable Vulcan to be competitive in global markets. We wanted to make sure the unit economics made sense."

ReElement Technologies, utilizing technology licensed from Purdue University, will provide Vulcan with thousands of metric tons of rare earth oxides annually for five years, starting in 2026. The materials will be sourced from recycled electronics or mining operations. ReElement’s CEO, Mark Jensen, explained: "We are laser focused on cost. We will see where the market goes, but right now we're focused more on the market price versus that price floor." The company employs a chromatography-based processing method, which differs from the conventional solvent extraction technique, enabling cost-effective production.

The agreement reflects efforts to strengthen domestic supply chains for critical minerals vital to advanced technology and defense applications. Industry discussions in Washington last month, attended by representatives from Vulcan, ReElement, and other firms, highlighted potential plans to extend similar pricing support to additional companies, according to Reuters. This collaboration underscores Vulcan and ReElement’s commitment to fostering sustainable and competitive rare earth production in the United States, supporting both commercial and industrial advancements.