The Office of Strategic Capital has announced a joint $700 million conditional loan commitment with Vulcan Elements and ReElement Technologies to expand domestic Neodymium Iron Boron, or NdFeB, magnet production.
Hear keynote speaker Emil Michael at the Potomac Officers Club’s 2026 Defense R&D Summit on Jan. 29, where top defense leaders, researchers and innovators will explore the technologies shaping future warfighting. Register now!
Table of Contents
How Will Vulcan Elements & ReElement’s OSC Loan Impact US Magnet Supply Chain?
The funding will expand U.S. capabilities in advanced rare earth element separation, metallization and magnet production, the Department of Defense said Friday. Vulcan will receive $620 million and ReElement $80 million to expand domestic manufacturing. The loans will enable the companies to produce up to 10,000 metric tons of NdFeB magnet material in the coming years, addressing a significant gap in the U.S. magnet supply chain.
How Are the OSC Loans Funded & Supported?
The conditional loans are funded through the One Big Beautiful Bill Act, which authorizes up to $100 billion for critical minerals projects. Under the agreement, the Department of Defense will receive warrants from Vulcan and ReElement. The Commerce Department’s CHIPS Program Office also signed a preliminary, nonbinding letter of intent for $50 million in equipment purchase incentives and will receive $50 million in equity from Vulcan Elements.
Remarks From DOD R&E Under Secretary Emil Michael
“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 Emil Michael, under secretary of defense for research and engineering.
Related Articles
Secretary of Homeland Security Kristi Noem, a 2025 Wash100 Award recipient, has unveiled a $1 billion investment to modernize aviation security technology across U.S. airports, pledging a smoother and more secure travel experience as Americans head into the Thanksgiving and Christmas travel seasons. Speaking at Harry Reid International Airport in Las Vegas, as seen in a video posted on social media platform X, Noem characterized the investment as the largest increase in airport screening technology in years. How Will DHS Use the $1B Investment? The funds will be used to deploy updated screening devices across the national airport network, with
Hanna Kim has departed Login.gov after two years with the program, where she most recently served as director of the federal digital identity platform. Kim announced her departure in a post on LinkedIn, describing the move as a difficult decision following a period of rapid capability development within the organization. During her tenure, Login.gov advanced several major initiatives, including the launch of Identity Assurance Level 2, the expansion of in-person identity proofing through U.S. Postal Service retail locations and the rollout of passport verification services. Kim credited the Login.gov team and its agency partners for advancing secure access to federal
The Department of Defense’s Office of the Under Secretary of Defense for Acquisition and Sustainment on Friday issued DOD Manual 5010.12, which updates its policy and processes for acquiring and managing contractor-prepared data across all defense components and throughout the contract lifecycle, from planning to post-award activities. What Information Does Manual 5010.12 Offer? Titled Acquisition and Management of Contractor-Prepared Data, the 102-page document applies broadly across all organizational entities within the DOD, including military departments and combatant commands. The scope covers both traditional Federal Acquisition Regulation, or FAR, and Defense Federal Acquisition Regulation Supplement, also known as DFARS, contracts, as