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Magnesium startup Magrathea says it's in discussions with companies to create a $100 million partnership that will fund and guide a commercial-scale demonstration plant, the company tells Axios Pro. 

Why it matters: Much of the world's magnesium comes from China, but manufacturers across sectors like defense and automotive are looking for more domestic suppliers.

Zoom in: An investment, a joint development agreement, licensing, or an outright acquisition of Magrathea are all options for the partnership, says CEO Alex Grant.

"We see ourselves as technologists. Large capital project execution is just another bag of potatoes," Grant says. "It was always our intention to bring in a dancing partner."

The company plans to use the partnership — with defense, chemical or mining firms — to support the development of a $50 million production facility that will be able to make 1,200 tons of magnesium per year. 

Magrathea has hired former Apple operations veteran Michael Vyvoda as chief operating officer to help oversee the demonstration plant.

How it works: Magrathea makes magnesium metal from seawater or brines using electrolyzers, which split materials into elements using electricity. 

The intrigue: Magrathea was developed as a climate tech startup to make zero-emission metals but has evolved into a defense supply chain company.

It's a trend that many other climate tech startups have followed.

Catch up quick: Magrathea previously raised $12.5 million in angel and seed funding from investors including VoLo Earth Ventures, Capricorn Investment Group, Valor Equity Partners and angels Sam Altman, Michael Liebreich, and Apoorv Bhargava. 

The Department of Defense also awarded Magrathea a $28 million partnership.

The big picture: Magnesium is a critical material to many manufacturers, chemical makers and industrial firms.

Both the Biden and Trump administrations have called for more domestic supplies of critical minerals.

What's next: After Magrathea's demonstration project, the company plans to build a 50,000-ton commercial plant.

Exclusive: Magrathea in talks for $100M deal

The startup wants help developing a facility that can make 1,200 tons of magnesium per year.

Magnesium made from seawater, created by startup Magrathea

Magnesium made from seawater, created by startup Magrathea. Photo courtesy of Magrathea

Magnesium startup Magrathea says it&#x27;s in discussions with companies to create a $100 million partnership that will fund and guide a commercial-scale demonstration plant, the company tells Axios Pro. Why it matters: Much of the world&#x27;s magnesium <a class="gtmContentClick" data-vars-link-text="comes from China" data-vars-click-url="https://www.semafor.com/article/11/17/2024/china-expands-export-controls-on-critical-minerals" data-vars-content-id="d38f20bd-b26b-49df-9643-1b4b047323ee" data-vars-headline="Exclusive: Magrathea in talks for $100M deal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.semafor.com/article/11/17/2024/china-expands-export-controls-on-critical-minerals" target="_blank">comes from China</a>, but manufacturers across sectors like defense and automotive are looking for more domestic suppliers.

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Exclusive: Magrathea in talks for $100M deal

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