US Looks to Invest in Rare-Earth Firms in Race With China (2)

The Commerce Department and Pentagon on Monday pledged financing and potential equity stakes in a domestic producer of rare-earth magnets that are at the center of a trade war with China, the world’s dominant supplier.

Commerce signed a non-binding, preliminary letter of intent to provide $50 million from the 2022 CHIPS Act to Vulcan Elements to purchase equipment needed to produce so-called permanent magnets used in fighter jets, wind turbines, and a range of other critical goods, according to a statement from the department.

Vulcan Elements separately said it’s receiving a $620 million direct loan from the Pentagon’s Office of ...