Vulcan Elements, a rare-earth magnets startup, has secured a $620 million contract from the U.S. Defense Department. This contract is part of a larger $1.4 billion partnership with the U.S. Government and ReElement Technologies aimed at expanding the domestic supply of magnets.
The startup is backed by 1789 Capital, a venture firm where Donald Trump Jr. joined as a partner in 2024. According to reports, 1789 Capital invested in Vulcan Elements approximately three months ago. In August, Vulcan Elements also announced a $65 million Series A funding round led by Altimeter Capital.
This government contract is reported as the largest ever made by the Pentagon’s Office of Strategic Capital. This year alone, at least four companies backed by 1789 Capital have received government contracts. The firm is also an investor in SpaceX and Anduril, both established technology suppliers to the government.
Vulcan Elements has stated that Donald Trump Jr. was not involved in the contract negotiations. A spokesperson for Trump Jr. also confirmed he had no involvement in negotiations with the government on behalf of the firm’s portfolio companies.