Pentagon Lends $700 Million to Vulcan, ReElement for Magnets

The US Department of Defense agreed to lend $700 million to producers of rare-earth magnets in a bid to increase domestic production of materials used in consumer electronics and weapons.

The conditional loan package is made up of $620 million to Vulcan Elements Inc. and $80 million to ReElement Technologies Corp. to lift production of magnets made from neodymium, iron and boron, the Pentagon said in a statement Friday. The Department of Commerce will take a $50 million equity stake in Vulcan.