Vulcan Elements, a North Carolina-based rare earth magnet manufacturer, has agreed to buy a supply of the critical minerals from ReElement Technologies that will be sourced outside of China.
The companies, both of which are privately held, declined to give precise financial terms but said that the price is "significantly below" the floor of $110 per kilogram that the U.S. Department of Defense guaranteed to MP Materials (MP.N) last month for the two most popular rare earths.
The contract was signed in mid-July, Vulcan said.
Rare earth oxides are used to make metal that can then be turned into magnets for use in fighter jets, radar and other military applications, as well as consumer electronics.
"This pricing will enable Vulcan to be competitive in global markets," Vulcan CEO John Maslin told Reuters. "We wanted to make sure the unit economics made sense."
Indiana-based ReElement, which licenses its technology from Purdue University, will supply Vulcan with "thousands of metric tons" of rare earth oxides annually for five years beginning in 2026 from outdated electronics or from mine sites, said CEO Mark Jensen.
ReElement says it can supply the rare earths to Vulcan below $110 per kilogram because of its use of a processing technique known as chromatography, which is different than the industry-standard solvent extraction used by many of its peers.
"We are laser focused on cost," Jensen told Reuters. "We will see where the market goes, but right now we're focused more on the market price versus that price floor."
Reuters was first to report last month that the Trump administration is considering extending that price floor to other firms, news that was relayed in a close-door Washington meeting attended by Vulcan, ReElement and others.
