The oversubscribed round will scale domestic rare earth production to establish domestic rare earth metal independence just as China uses export controls to drastically limit supply and threaten U.S. manufacturing.
WOBURN, Mass.–(BUSINESS WIRE)–Phoenix Tailings expanded the initial $43 million Series B round, led by Envisioning Partners, to $76 million on a second close. The second close was anchored by Escape Velocity, a venture vehicle founded by former Goldman Sachs executives Ganesh Ramani and Ram Sundaram, along with new investments from Builders Vision, Yamaha Motor Ventures, M Power, and Presidio, the venture arm of Sumitomo Corporation, among several other key investors.
The investments will fund the expansion of Phoenix Tailings’ proven rare earth processing technology, which integrates both separation and metallization to transform U.S. and allied raw materials into finished rare earth metals domestically. The new Exeter, New Hampshire facility will have a total capacity of 500 tons per year of rare earth metal output, equivalent to the entire annual demand of the U.S. defense industrial base. Initial production will begin in summer 2025 with 200 tons per year.
Exeter will be the first standalone rare earth refining operation in the United States capable of accepting feedstocks from mines, recycled products, coal fly ash, and other byproducts, processing them into finished metals. These metals will be sold to domestic and allied magnet manufacturers supplying critical components to the defense, medical device, and automotive sectors.
Phoenix Tailings will initially produce neodymium-praseodymium, ferro-dysprosium, dysprosium, and terbium at the Exeter facility. These rare earth metals are essential for manufacturing permanent magnets used in technologies ranging from electric vehicles and MRI machines to transformers and jet engines.
This expansion comes at a pivotal time. China, which processes more than 95 percent of the world’s rare earth minerals, recently announced sweeping export controls, threatening global access to these critical materials. Meanwhile, global demand for rare earth metals continues to surge.
“We’re witnessing the consequences of relying on a geopolitical competitor for materials essential to our economy and national defense. But this moment is also an opportunity,” said Nick Myers, co-founder and CEO of Phoenix Tailings. “We have the resources, the talent, and now, the momentum to build a secure rare earth supply chain right here in the United States. With this new funding, Phoenix Tailings is accelerating that vision—delivering critical metals without compromising on safety, environmental standards, or cost. The future of rare earths can and should be American-led.”
“We are extremely excited to be supporting the Phoenix Tailings team to scale up their production and continue delivering on their first long-term contract and beyond. Reducing supply chain dependence in rare earth metals is good sustainable business particularly when it can be done cheaper and cleaner using better technology,” said Yong Hyun Kim, Managing Partner of Envisioning Partners.
“Phoenix Tailings’ breakthrough chemistry and technology offers not only an environmentally responsible way to refine critical minerals, but does so with a cost-competitive edge on the global stage. At a time when geopolitics and national security make domestic capabilities more urgent than ever, we are proud to support Phoenix Tailings and excited for the journey ahead with this exceptional company,” said Ram Sundaram, Co-Founder of Escape Velocity.
«At Yamaha, we recognize how upstream supply chains impact our business, even though we don’t purchase rare earth materials directly. Our strategic investment in Phoenix Tailings’ pioneering approach to rare earth metal processing maps to our objectives to support foundational technologies working to address vulnerabilities in the global supply chain, enabling both economic and ecological progress. Yamaha is confident in the Phoenix Tailings team’s ability to scale its innovative process, creating a more resilient manufacturing ecosystem for critical industries and protecting our business by addressing these supply chain gaps,” said Anish Patel, COO and Managing Director at Yamaha Motor Ventures.
“Our investment in Phoenix Tailings and its new US-based facility underscores our conviction in their ability to help secure a prosperous, resilient future,» said James Lindsay, Investment Director at Builders Vision. «It is critical that we meet the accelerating demand for rare earth and critical minerals. Their innovative process for recovering and refining rare earth elements unlocks a vital supply chain for clean technologies – and sets a new standard for responsible resource management within the mining sector.»
About Phoenix Tailings
Phoenix Tailings is a U.S.-based rare earth metals production company, currently operating a domestic refining facility in Massachusetts and shipping final metal products globally. The company has developed innovative technology that enables the economic and safe processing of rare earth elements into final metals and metal alloys. Phoenix Tailings is supported by world-class investors, partners, and agencies such as In-Q-Tel (IQT), BMW, Yamaha Motor Ventures, ARPA-E, and MIT. Phoenix is currently operating a 40-ton-per-year commercial facility and is constructing a new commercial facility in New Hampshire to scale the production of final metals and metal alloys. At present, Phoenix Tailings sources rare earth concentrates from domestic and allied producers. In the long term, the company aims to recover rare earths from mining waste, or tailings, as part of its commitment to building a truly stable and circular supply chain.
Contacts
Press Contact:
Carolyn Clendenin
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(347) 869-3782
