Marina Lyubimova
⬤ Vulcan Elements is launching a $1 billion initiative to build what's set to become the largest rare earth magnet manufacturing facility outside China. The massive 1 million square foot plant in Benson, North Carolina comes at a time when China controls 69% of global rare earth production in 2024, a significant concentration that's driving renewed focus on domestic manufacturing capabilities in the United States.
⬤ The project combines a $620 million Pentagon loan with $550 million in private investment. The facility plans to produce thousands of tons of rare earth magnets each year while creating roughly 1,000 jobs by 2027. China's production has surged from under 100,000 metric tons in earlier years to nearly 400,000 metric tons in 2024. Other producing countries like the United States, Australia, Myanmar, Thailand, and Nigeria contribute to global output but remain far behind China's scale, showing just how concentrated the supply chain really is.
⬤ Rare earth materials are essential for energy technology, defense systems, and electric vehicle production. China has built its commanding position over the past twenty years, pushing other regions to prioritize their own industrial capacity. The new Vulcan Elements plant represents a concrete step toward expanding America's downstream magnet production and reducing reliance on imported materials that power critical technologies.
⬤ The Benson facility highlights how supply chain diversification is becoming increasingly important in the rare earth sector. With China maintaining its dominant share of global output, projects backed by both public and private funding could gradually strengthen production resilience and competition. How this initiative develops, alongside growing demand across multiple high-impact industries, will likely influence rare earth market dynamics in the years ahead.
Marina Lyubimova
