Vulcan Elements, a rare earth magnet maker based in North Carolina, US, has entered a supply agreement with Indiana-based ReElement Technologies to procure critical minerals sourced from outside China, according to a Reuters report.
The privately held companies did not reveal the specific financial details of the transaction.
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However, it is said that Vulcan Elements will purchase the rare earths outside of China at a price “significantly below” the $110/kg floor guaranteed by the US Department of Defense to MP Materials.
ReElement Technologies has attributed its competitive pricing to the use of chromatography in processing, a technique that sets it apart from the solvent extraction method commonly employed in the industry.
Licensing its technology from Purdue University, ReElement will supply Vulcan with “thousands of metric tonnes” of rare earth oxides annually for five years, starting in 2026, sourced from outdated electronics or mine sites.
ReElement Technologies CEO Mark Jensen was quoted as saying: “We are laser focused on cost. We will see where the market goes, but right now we are focused more on the market price versus that price floor.”
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By GlobalDataThe contract, signed in mid-July, positions Vulcan Elements to be more competitive on the worldwide stage, according to the company’s CEO John Maslin.
“This pricing will enable Vulcan to be competitive in global markets,” he stated. “We wanted to make sure the unit economics made sense.”
The news of this deal follows reports that the Trump administration may extend the price floor to other companies, a topic discussed in a closed-door meeting in Washington attended by both Vulcan Elements and ReElement Technologies.
ReElement Technologies recently established commercial protocols for extracting ultra-high-purity germanium from recycled materials and ore-based feedstocks.
