Vulcan Elements, a burgeoning startup focused on rare-earth magnets, has secured a substantial $620 million contract from the U.S. Department of Defense. The deal highlights the company's rapid growth and its notable backing by 1789 Capital, the venture capital firm co-founded by Donald Trump Jr., as reported by the Financial Times.
This significant award is part of a broader $1.4 billion strategic partnership involving the U.S. government and ReElement Technologies, aimed at bolstering the domestic supply chain for critical magnets. This initiative underscores a national effort to reduce reliance on foreign sources for essential materials vital to defense and technology sectors, according to Vulcan Elements.
Donald Trump Jr. joined 1789 Capital as a partner in 2024. The venture capital firm reportedly invested in Vulcan Elements approximately three months prior to this contract announcement, as detailed by Bloomberg. Vulcan Elements itself had previously announced a $65 million Series A funding round in August, led by Altimeter Capital, showcasing its strong investor interest.
According to the Financial Times, this $620 million deal marks the largest contract ever awarded by the Pentagon’s Office of Strategic Capital, highlighting its strategic importance. Furthermore, 1789 Capital has seen at least four of its portfolio companies secure government contracts this year. The firm also boasts investments in established defense technology providers like SpaceX and Anduril, both long-standing suppliers to the U.S. government.
Both Vulcan Elements and a spokesperson for Donald Trump Jr. have denied any involvement by Trump Jr. in the contract negotiations. His spokesperson stated that he "had no involvement in negotiations with the government on behalf of 1789’s portfolio companies," as reported by the Financial Times.
