Exclusive: Vulcan supplying rare-earth magnets for Army drone push
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Vulcan Elements will make magnets for the U.S. Army's SkyFoundry initiative, which seeks stateside mass production of small drones, CEO John Maslin told Axios.
The big picture: Supply-chain surety is a national-security imperative.
- China's rare-earth crackdown has strained manufacturers across the world while also complicating the relationship between Washington and Beijing.
- "We won because we're decoupled," Maslin said of his startup's selection.
Zoom in: Vulcan will supply neodymium iron boron magnets for the service, which is closely watching the proliferation of unmanned battlefield technologies in Eastern Europe and the Middle East.
- The magnets will support production of brushless direct-current motors.
- "This is a major deal, if you believe drones are the future of warfare, delivery and agriculture," Maslin said. "Countries that make things win."
Follow the money: This marks Vulcan's 10th Defense Department contract.
Zoom out: Vulcan late last year secured a $620 million Office of Strategic Capital loan to "support the production of advanced rare earth element separation, metallization and magnet manufacturing capabilities."
- The White House intervened to make it possible, ProPublica reported.
- Vulcan responded Tuesday to inquiries from the House Natural Resources and Oversight committees. A spokesperson separately told Axios that the startup maintains "it did not ask or solicit its investors to facilitate the Pentagon loan."
What's next: Vulcan is building a 1.1-million-square-foot facility in Benson, North Carolina, about an hour from Fort Bragg.
- That footprint is equal to about 600 Waffle Houses, according to Maslin.
- "Making these magnets is not easy," he said. "It's actually phenomenally complex."
Go deeper: Supply chain terror
