Dive Brief:
- Rare earth magnet manufacturer Vulcan Elements and state officials announced Tuesday that the company selected Benson, North Carolina, for a $918.1 million facility, according to Gov. Josh Stein’s press release.
- The site will span 1 million square feet and feature 10,000 metric tons of manufacturing capacity, according to Vulcan’s press release.
- The facility will also create 1,000 jobs, including administrative, engineering and production roles, according to Stein’s press release.
Dive Insight:
The site selection follows Vulcan’s $1.4 billion partnership with the U.S. government and rare-earth and critical-minerals refiner ReElement Technologies, announced in early November.
The partnership aims to scale and strengthen Vulcan and ReElement’s vertically integrated rare-earth magnet supply chain domestically, according to the Nov. 3 press release.
Vulcan manufactures sintered permanent neodymium-iron-boron magnets that convert electricity in motion, according to the company’s press release. They are deemed essential in advanced machines and electronic devices, including artificial intelligence data centers, semiconductor fabrication equipment, satellites, drones, robotics, electric motors, and most military platforms.
ReElement, which transforms end-of-life magnets, electronic waste and mined concentrates into high-purity, separated rare earth oxides, will expand its recycling and processing capabilities to supply Vulcan with the feedstock.
Vulcan’s Benson facility will receive a $620 million direct loan from the Department of Defense’s finance arm, the Office of Strategic Capital; $50 million in federal incentives under the Chips and Science Act; and $550 million in private capital. ReElement’s expansion will receive an $80 million direct loan from DOD’s Office of Strategic Capital, which will be matched by private capital.
Loan funds were allocated through the One Big Beautiful Bill, which President Donald Trump signed into law on July 4, according to an Aug. 10 DOD press release. The bill provides the Office of Strategic Capital with $500 million of credit subsidy funding, creating up to $100 billion in available loan funds specifically for critical minerals production and related industries and projects.
Additionally, DOD will receive investment rights in both companies, while the Commerce Department will receive $50 million of equity in Vulcan.
The facility implements its collaboration with DOD and ReElements, CEO John Maslin said in a LinkedIn post on Tuesday.
“North Carolina is a natural home for Vulcan Elements’ next stage,” Maslin said in a Nov. 18 statement. “We need to draw on world-class talent, innovation, and infrastructure as we secure one of the 21st century’s most important supply chains.”
Vulcan will operate out of Crosspoint Logistics Center, an industrial property that currently houses a 501,000-square-foot building, which the magnet maker will expand, according to a Johnston County Economic Development press release.
The Benson site is strategically located near Interstate 40, downtown Raleigh, and the Ports of Wilmington, Virginia and Charleston, according to a leasing flyer. It’s also near Research Triangle Park, where Vulcan’s small-scale and research and development facility is located, which Vulcan opened in March.
Vulcan will be among the first companies to use the new $40 million advanced manufacturing training center, which opened in September. Located in Four Oaks, the facility is operated by Johnston Community College.
Additionally, the Benson location will be near other universities, community colleges and workforce training programs, powder metallurgy and advanced manufacturing facilities as well as military and veteran communities, including U.S. Army base Fort Bragg, according to Vulcan’s Nov. 18 press release. Maslin served six years in the U.S. Navy, including as a financial manager in its nuclear propulsion program.
“As we create 1,000 new American jobs, we will tap into the region’s deep bench of experience across industries —from engineers and technicians who understand hardware and manufacturing to military veterans who have spent their careers managing complex supply chains, operating heavy machinery, and serving their country,” Maslin said in the press release.
