As reported by multiple news agencies, BMW and Yamaha Motor Co., Ltd. are partnering with Phoenix Tailing, a U.S.-based startup focused on sustainable rare earth processing, as part of the manufacturer’s efforts to reduce its dependence on China for strategic metals. I invested in Rare earth elements, a group of 17 important metals, are essential in the production of magnets used in electric cars, cell phones, and other electronic devices. However, the traditional purification method, solvent extraction, has declined in the United States since its introduction in the 1950s due to its high cost and negative environmental impact. Meanwhile, China has spent decades refining this process to secure a dominant position in global supply chains. Recent Chinese export restrictions have prompted Western countries to step up efforts to develop alternative technologies.
Phoenix Tailings’ innovative process allows it to extract rare earths from both mined ore and recycling equipment with minimal or no emissions, positioning the company as a cleaner, more sustainable alternative. I claim that. The startup recently closed a $43 million Series B funding round on December 20th, with investment from BMW and Yamaha’s venture capital arm, as well as venture funds including Envisioning Partners, MPower, and Escape Velocity. .
The funding will support the construction of a $13 million facility in Exeter, New Hampshire, which is expected to produce 200 tons of rare earths per year by June 2025. Additional funding will be allocated to research, engineering and business development. Phoenix, which is headquartered in Massachusetts and employs 33 people, has already signed more than $100 million worth of supply contracts, although it has not disclosed its partners. The success of the Exeter facility could pave the way for larger processing plants across the United States, consistent with the company’s goal of going public within three to five years.
In contrast to larger companies like MP Materials and Linus Rare Earths, which face challenges from competition from Chinese producers, Phoenix benefits from not operating its own mines. There is. This allows the company to focus on sophistication and sustainability. It is also seeking U.S. government loans and grants to strengthen its efforts.
The company previously raised $10 million in a Series A funding round in August 2021. Industry officials say the current administration’s focus on domestic manufacturing and critical mineral production could provide significant support to companies like Phoenix Tailings as they strive to make the U.S. more self-sufficient. It suggests that there is. rare earth market.
