BMW (DE:BMW) and Yamaha Motor (DE:YMA) have thrown their weight behind Phoenix Tailings, a Massachusetts-based rare earths processing startup, signaling a significant shift in how these critical metals are sourced. According to Reuters, the two companies joined a $43 million Series B funding round to support Phoenix’s mission of creating a cleaner, U.S.-based alternative to China’s rare earths monopoly.
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Rare earths, essential for everything from electric vehicles to smartphones, are usually processed through solvent extraction, a costly and highly polluting method. China has dominated this field for decades, refining its techniques while other nations faltered. Phoenix, however, claims its technology can process rare earths from mined ore or recycled equipment with minimal emissions, potentially rewriting the rulebook for this industry.
Funding Drives New U.S. Facility
Phoenix plans to use $13 million of its new funding to establish a rare earths facility in Exeter, New Hampshire, expected to open by mid-2025. CEO Nick Myers told Reuters the facility will produce 200 metric tons annually and could lead to larger operations if successful.
The company has already inked $100 million in supply contracts, though it hasn’t disclosed with whom. Myers believes Phoenix’s mine-free model and potential U.S. government backing could give it a competitive edge against Chinese rivals.
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