The Trump administration is putting millions into a minerals company backed by the president's son [View all]

Source: The Independent

Thursday 19 March 2026 21:00 EDT


A start-up focused on building rare-earth magnets used in key technologies has seen its valuation skyrocket thanks to two investors: the Trump administration and a venture capital firm that counts the president’s son, Donald Trump Jr., as a partner. Vulcan Elements, which aims to shore up U.S. access to key materials for high technology, has gone from a $200 million valuation to a potential $2 billion one, according to a Bloomberg analysis.

Over the summer, 1789 Capital, which Trump Jr. joined shortly after his father was elected, joined a group of investors backing the firm, which hopes to help the U.S. develop mineral-processing capacity that’s largely in the hands of China.The Trump administration, which watched as rare-earth minerals became a bargaining chip in tariff negotiations with Beijing, soon followed, offering the company a record-breaking $620 million Defense Department loan, as well as $50 million in CHIPS Act incentives, securing the Commerce Department an equity stake in the company.

The investments deepened ties between 1789 and the administration. In 2019, 1789 co-founder Chris Buskirk founded the Rockbridge Network, an influential group of conservative donors, alongside Vice President JD Vance. 1789 told Bloomberg that neither the company nor Trump Jr. was involved in securing the government investment in the firm.

Trump Jr. and his brother Eric, meanwhile, are also backing a drone company angling for military business, as the Pentagon seeks to bulk up drone capabilities in the face of an onslaught of UAV attacks in the Iran war. The association between the Trump family business and the Trump administration’s investments has provoked scrutiny from Democrats.

Read more: https://www.the-independent.com/news/world/americas/us-politics/vulcan-elements-donald-trump-jr-b2942286.html