Trump Administration Pumps $1.4 Billion into Rare-Earth Magnet Startups to Counter China's Dominance

The Trump administration has backed two U.S. startups, American Resources Corp. and Vulcan Elements, with a $1.4 billion deal to build a fully domestic rare earth magnet supply chain. The deal includes a $620 million loan from the Department of War's Office of Strategic Capital, a $50 million grant from the Commerce Department, and $550 million in private investment. The move aims to reduce U.S. reliance on Chinese rare earth magnets and is part of a national security strategy to secure domestic supply chains for critical minerals and semiconductors.