US Taxpayers and Trump’s Son Are Backing the Same Rare-Earth Startup
The investments are transforming Vulcan Elements. But some Republicans are uncomfortable with state-sponsored capitalism.
President Donald Trump; the rare-earth metal neodymium; Donald Trump Jr. (above); 1789 Capital co-founder Omeed Malik (below); a water tower in Johnston County, North Carolina.
Photos: Bloomberg (Trumps and Malik); SPL/Science Source (metal); Jeremy M. Lange for Bloomberg Markets (water tower)
Rare-earth magnets are part of the invisible warp and weft of modern life. They help seat belts fasten, wind turbines spin and missiles launch. But China has long had a choke hold on their production.
Vulcan Elements, a three-year-old startup, aims to build the largest rare-earth magnet factory in the world outside China. These powerful parts—much stronger than the ceramic kind loaded into household appliances—are fashioned from difficult-to-isolate elements and act as a linchpin for satellites, drones, robotics and a range of other defense technologies. Vulcan’s operations will transform a once-mainly agricultural corner of central North Carolina—and, even more, US industrial policy.