BMW, Yamaha Motor Back US Rare Earths Startup Phoenix Tailings

In a significant move towards securing a stable and sustainable supply of critical materials, BMW i Ventures and Yamaha Motor Ventures have invested in Phoenix Tailings, a pioneering U.S. company focused on refining rare earth metals. This Series B financing round, led by Envisioning Partners with additional participation from Yamaha Motor Ventures and Escape Velocity, will enable Phoenix Tailings to scale its rare earth processing operations to produce approximately 200 tons annually.

Founded in a backyard in Cambridge, Massachusetts, by four visionary co-founders, Phoenix Tailings is determined to transform how critical metals are produced. With backing from the U.S. Departments of Energy and Defense, as well as the State of Massachusetts, the company has secured initial offtake agreements, validated its groundbreaking technology, and assembled a world-class team to bring this vision to fruition.

Phoenix Tailings' innovative process extracts rare earth metals from both traditional ores and non-traditional feedstocks such as recycled materials and mining waste, known as "tailings," without producing toxic byproducts. This breakthrough approach allows the company to be cost-competitive with traditional processes currently dominated by China and Russia. By delivering a sustainable and secure supply of rare earth metals, Phoenix Tailings plays a vital role in strengthening the U.S. supply chain for defense manufacturing and meeting the growing demand for these essential materials in commercial industries.

As our reliance on advanced technology grows, so does our dependence on critical metals, particularly lesser-known materials like rare earth metals. From automotive and defense to medical devices, rare earth metals are essential to modern manufacturing. At Phoenix Tailings, they are ensuring the United States can meet this surging demand through processes that are ethical, sustainable, and economically viable.

BMW i Ventures, the independent venture capital firm of BMW Group, invests in early to growth-stage companies defining the future of automotive, sustainability, manufacturing, and supply chain. With $800 million under management and over 80 startups invested in, BMW i Ventures is committed to supporting innovative companies like Phoenix Tailings that are reshaping global supply chains and contributing to a more sustainable future.



The global rare earth metals market was valued at USD 15.3 billion in 2023 and is estimated to grow at a CAGR of over 10.8% from 2024 to 2032. The growing demand for electric vehicles, renewable energy technologies, and other advanced technologies is driving the need for critical materials like rare earth metals. Phoenix Tailings' innovative process and strategic partnerships with companies like BMW and Yamaha Motor position it well to capitalize on this growing market and contribute to a more sustainable future for the rare earth metals industry.



In conclusion, the investment by BMW i Ventures and Yamaha Motor Ventures in Phoenix Tailings is a significant step towards securing a stable and sustainable supply of critical materials for defense and commercial industries. Phoenix Tailings' innovative process, strategic partnerships, and commitment to sustainability make it an attractive investment opportunity in the growing rare earth metals market. As our reliance on advanced technology continues to grow, so too will the importance of companies like Phoenix Tailings in ensuring a secure and sustainable supply of critical materials.