(The Center Square) – Start-up investors have chosen to stay in North Carolina for a $1 billion rare-earth magnet factory, the largest in the world outside of China.
Vulcan Elements Inc., corporately headquartered in Cambridge, Mass., and backed by the Pentagon in its small Research Triangle Park home, is expanding south to the Johnston County community of Benson at the intersection of Interstates 95 and 40. Local incentives could be up to $95 million; a state package is for up to $25.2 million.
“North Carolina is a natural home for Vulcan Elements’ next stage,” said Vulcan Elements CEO John Maslin. “We need to draw on world-class talent, innovation, and infrastructure as we secure one of the 21st century’s most important supply chains. As home to our current facility, North Carolina has proven that it has all three.”
The expansion, Maslin says, enables Vulcan to execute the $1.4 billion partnership with the U.S. Department of War announced on Nov. 3. That includes the facility announced; and that Vulcan and ReElement Technologies – a refining company of rare earth and critical battery metals in Noblesville, Ind. – will scale their 100% vertically-integrated domestic supply chain.
The Vulcan expansion is financed by a $620 million direct loan from the Office of Strategic Capital at the War Department; $50 million in federal incentives from the Department of Commerce’s CHIPS Program Office; and $550 million in private capital. ReElement got an $80 million direct loan from the Office of Strategic Capital, matched by private capital for its expansion.
The Department of War will receive warrants in both Vulcan Elements and ReElement Technologies. The U.S. Department of Commerce will receive $50 million of equity in Vulcan Elements.
The 2-year-old company started by a former Naval officer will expand to 10,000 metric tonnes of rare earth magnet manufacturing capacity. Vulcan manufactures sintered permanent neodymium iron boron magnets in the United States for critical defense and commercial applications.
Vulcan expects to generate 1,000 jobs over four years to Johnson County, according to state Commerce Department officials.
The expansion is expected to create 1,000 jobs over four years paying an average wage of $81,900.
The state’s Economic Investment Committee on Tuesday approved a grant to Vulcan of up to $23.4 million over 12 years if the company meets its hiring projections. Other state assistance, such as workforce training, could bring the total to $25.2 million.
Rare-earth magnets are used in virtually any technology with motors, sensors, generators or actuators, including defense systems, according to the state. Artificial intelligence data centers have also increased the demand for rare-earth magnets.
Benson has a population of 4,144, according to the U.S. Census. It is less than a half-hour from the Army’s Fort Bragg, home of the 82nd Airborne and Special Operations Forces and generally considered the location where a president “makes a 911 call” in times of military crisis or prevention.
“The confidence that Vulcan Elements has to expand to Johnston County is proof that we have the right assets to help innovative start-ups scale their businesses,” first-term Democratic Gov. Josh Stein said in a statement. “With semiconductor chips, batteries, and now magnets, North Carolina is building an innovation and manufacturing hub that will drive the economy of the future.”.
