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Pentagon Backs $620 Million Loan to Rare-Earth Startup Tied to Trump Jr.

The reported award is part of a $1.4 billion push to build a domestic rare-earth magnet supply chain, drawing fresh ethics scrutiny.

Overview

  • Vulcan Elements, backed by Donald Trump Jr.’s firm 1789 Capital, is reported to receive a Pentagon loan of about $620 million as part of a magnet-production buildout.
  • The financing sits within a $1.4 billion partnership that also involves ReElement Technologies to expand U.S. magnet capacity.
  • The Financial Times reports the loan would be the largest yet from the Pentagon’s Office of Strategic Capital.
  • Vulcan and a spokesperson for Trump Jr. say he had no role in negotiations over government funding.
  • Coverage notes conflicting figures for the loan—some reports cite $260 million, others $620 million—and highlights that other 1789-backed firms have secured roughly $735 million in government contracts this year.