The Office of Strategic Capital (OSC) announces a joint $700 million conditional loan commitment with Vulcan Elements ("Vulcan") and ReElement Technologies ("ReElement") to increase domestic Neodymium Iron Boron (NdFeB) magnet production and significantly bolster U.S. critical minerals supply chains.
The OSC commitment includes two separate loans, one to Vulcan for $620 million and one to ReElement for $80 million. These loans will directly support the production of advanced rare earth element separation, metallization, and magnet manufacturing capabilities in the United States. With the increased manufacturing and processing capabilities enabled by OSC's loans, Vulcan and ReElement anticipate collectively producing up to 10,000 metric tons of NdFeB magnet material in the next several years, thereby significantly reducing the U.S. NdFeB magnet supply chain gap.
"These OSC conditional commitments build on the swift and decisive actions taken by the Trump Administration to secure a domestic supply chain for the magnets used in chip manufacturing, drones, electric vehicles, fighter jets, industrial motors, nuclear submarines, and satellites," said the Honorable Emil Michael, Under Secretary of War for Research and Engineering. "Following the Department of War's agreement earlier this year with MP Materials, these conditional loan commitments with Vulcan and ReElement present a forward-leaning approach to further strengthen America's magnet production."
The funding for OSC's conditional loans comes from the One Big Beautiful Bill Act (OBBBA), passed by Congress and signed by President Trump in July 2025. The Act provides up to $100 billion in total OSC lending authority specifically for critical minerals production and related industries and projects. The Department of War will also receive warrants from Vulcan and ReElement as part of the joint commitment. Additionally, the Department of Commerce's Creating Helpful Incentives to Produce Semiconductors (CHIPS) Program Office signed a preliminary non-binding letter of intent to provide $50 million in proposed federal incentives under the CHIPS and Science Act for the purchase of equipment in parallel with OSC's financing. The CHIPS incentives will provide further investment stability to strengthen domestic critical minerals production. The Department of Commerce will also receive $50 million of equity in Vulcan Elements.
The conditional loan commitments between OSC and the respective companies specify additional steps both companies must take to proceed toward financial close on the loan, to include fulfilling financial, legal, technical, and other due diligence requirements. No OSC funds are disbursed until all parties have completed or met the conditions for disbursement as specified in the loan commitment. The time between conditional commitment and financial close varies by project to ensure full due diligence and ultimately protect the American taxpayer.
"These commitments demonstrate that OSC's federal financing tools can successfully scale private capital investment in sectors vital to our economic and national security," said Mr. Ryan Lindner, Chief Investment Officer, OSC. "I am immensely grateful to Under Secretary Michael, Deputy Secretary Feinberg, and Secretary Hegseth for their support in executing these commitments, which are part of the Trump Administration's whole-of-government effort to secure domestic critical minerals production, revitalize the U.S. industrial base, and ultimately achieve peace through strength."