Vulcan Elements to Supply Rare-Earth Magnets for U.S. Army SkyFoundry Drone Initiative

Vulcan Elements will manufacture neodymium iron boron magnets for the U.S. Army's SkyFoundry initiative, marking the startup's 10th Defense Department contract, CEO John Maslin told Axios on September 23, 2026. The magnets support production of brushless direct-current motors for small drones as the Pentagon pursues stateside mass production. Maslin attributed the selection to Vulcan being "decoupled" from Chinese supply chains amid Beijing's rare-earth export crackdown. Vulcan secured a $620 million Office of Strategic Capital loan in late 2025 for rare-earth separation, metallization and magnet manufacturing. ProPublica reported White House intervention enabled the financing. Vulcan responded Tuesday to House Natural Resources and Oversight committee inquiries, denying it solicited investors to facilitate the Pentagon loan. The company is building a 1.1-million-square-foot facility in Benson, North Carolina, near Fort Bragg.