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Phoenix Tailings acquires Machinery Partner for ai-driven rare earth production; new funding adds minerals trader Traxys. "Rare earth processing is ultimately a technology race," says Nick Myers, CEO and co-founder of Phoenix Tailings, an emerging builder of a fully integrated rare earth production platform spanning extraction, separation, refining and metallization with a zero waste and zero emissions philosophy that is based in Exeter, New Hampshire. "Success comes from having the best chemistry, the best industrial hardware, and now the best digital infrastructure." To bolt on that final element, in May his company acquired Boston-based technology firm Machinery Partner, expanding Phoenix Tailings' capabilities in artificial intelligence, automation and digital manufacturing infrastructure. The deal comes about three months after raising $40 million more in recent funding efforts that have brought in a total of $116 to back its expansion and platform development plans. "Phoenix Tailings has built the strongest rare earth technology platform in the world, and Machinery Partner accelerates our ability to continuously improve with every production run through AI, automation, and operational intelligence." The acquisition adds a third pillar of innovation to Phoenix Tailings' already best in class chemistry and industrial hardware expertise, bringing advanced digital infrastructure, says Myers. Machinery Partner is basically an industrial equipment dealership with strong information technology capabilities at its core. Founded in 2020, it provides a digital platform for selling, servicing and financing heavy equipment in sectors like aggregate, mining, concrete and recycling. Co-founders Clement Cazalot and David Blair will join Phoenix Tailings as Chief Operating Officer and Vice President of Data and Automation, respectively. Both are experienced multi-time founders with backgrounds in advanced software innovation and digital infrastructure. "Rare earth independence will not be achieved by simply rebuilding legacy industrial systems," said Clement Cazalot, co-founder and CEO of Machinery Partner. "The future belongs to companies that combine advanced chemistry, industrial hardware, and digital intelligence into one integrated technology platform. Together, Phoenix Tailings and Machinery Partner are building the technological foundation that can outcompete global incumbents and accelerate America's rare earth freedom." Machinery Partner's operating system and AI platform are already deployed across hundreds of industrial sites in the United States. At Phoenix Tailings, the technology will be integrated across refining operations to create a highly automated, data driven manufacturing platform for rare earth processing. The integration is expected to deliver several strategic advantages: * Higher production yields through AI assisted chemistry optimization * Increased equipment uptime through predictive monitoring and diagnostics * Lower production costs through automation and process efficiency * Faster deployment of refining systems through standardized digital infrastructure Rare earth processing remains one of the most technologically complex industrial sectors in the world, requiring expertise across chemistry, materials science, and manufacturing systems, notes Phoenix Tailings. "To break the Chinese monopoly on rare earth processing, America cannot simply replicate Chinese approaches and expect them to succeed in the Western world. The United States must do what it does best: build breakthrough technologies that dramatically outpace the competition." New funding & strategic partners The new funding was announced in mid-February when Phoenix Tailings closed a $40.2 million oversubscribed B-3 amplification round, bringing total Series B funding to $116.6 million. Consisting of $30.2 million in equity and $10 million in venture debt, the round was offered exclusively to existing investors and select strategic partners. Proceeds will expand the company's capabilities beyond its current production of neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb) to include samarium (Sm), yttrium (Y), and other critical rare earth metals. The round added several new strategic partners including Luxembourg-based global minerals trader Traxys, Italian energy company Eni Next, and Geodesic Alliance Fund, with further support from existing investors. "We made the deliberate decision to open a small amplification round available only to a select group of partners at a critical moment for our company," said Myers. "As we prepare to massively scale production to meet surging global demand, we are bringing together powerhouses from around the world to accelerate execution and expand capacity." "Traxys is the premier trading house in the world for rare earths, with deep expertise operating across borders and navigating complex global markets," he added. "Their understanding of critical mineral flows and customer demand is unmatched. With Traxys as a partner, we are closing supply chain gaps and building a fully integrated rare earth platform that delivers security, transparency, and reliability to global customers."

China targets US Rare Earth firms as critical minerals rivalry intensifie. June 22, 2026 (Singapore, 22.06.2026)China has imposed export controls on two major US rare earth producers and eight other American companies, marking the latest escalation in the strategic competition between the world's two largest economies over critical minerals and advanced technology. The new restrictions, announced by China's Commerce Ministry on Monday, place MP Materials Corp. and USA Rare Earth Inc. on an export control list that limits their access to Chinese dual-use goods - products that can serve both civilian and military purposes. Beijing said the measures are intended to "safeguard national security and interests" and are a direct response to Washington's recent decision to add dozens of Chinese companies to a Pentagon blacklist over alleged military links. The latest move ends several months of relative calm following a summit between US President Donald Trump and Chinese President Xi Jinping in May, where both sides pledged to stabilize bilateral ties and reduce trade tensions. Retaliation over US blacklist. China's Commerce Ministry said the export controls were introduced in response to what it described as the US government's "egregious act" of expanding its so-called Chinese military enterprise list earlier this month. The Pentagon's updated blacklist added around 80 Chinese companies and subsidiaries, including technology giants Alibaba and Baidu as well as electric vehicle maker BYD, accusing them of supporting China's military development. Under the new rules, exporters are prohibited from supplying dual-use items to the listed US companies, and any ongoing export activities must stop immediately. The restrictions also extend beyond China's borders. Organizations and individuals worldwide are barred from transferring or providing Chinese-origin dual-use products to the sanctioned firms, effectively widening the reach of Beijing's export controls. Besides the two rare earth companies, the list includes aerospace, robotics and drone manufacturers such as Aveox and Oshkosh Defense. China's Finance Ministry separately announced that government procurement agencies would no longer purchase products made by 46 US defense-related firms, including Lockheed Martin, Raytheon, Boeing's defense division, General Dynamics units and Anduril Industries. Companies with US investments operating in China are exempted from the procurement ban. The inclusion of MP Materials and USA Rare Earth is particularly significant, as both companies are central to Washington's strategy of building an independent rare earth supply chain. MP Materials operates Mountain Pass in California, currently the only major rare earth mine in the United States, and received a US$400 million investment from the Department of Defense last year. USA Rare Earth recently secured US$1.6 billion in funding from the Department of Commerce and agreed to acquire Brazil's Serra Verde Group to expand its access to mineral resources. The two firms are among several American producers increasing capacity after supply disruptions during the US-China trade dispute in 2025. Earlier this month, rare earth refiner Phoenix Tailings also secured a conditional US$500 million Pentagon loan to build a new processing plant. Race to reduce dependence on China. Rare earths are a group of 17 metallic elements used in products ranging from smartphones and electric vehicles to wind turbines, fighter jets and guided missiles. Permanent magnets made from these materials are considered essential for both advanced manufacturing and defense industries. Although rare earths are relatively abundant, mining and refining them is expensive, technically complex and environmentally challenging, making alternative supply chains difficult to establish. China remains the dominant player across the industry. According to the International Energy Agency, it accounts for around 60% of global mined production used in permanent magnets, more than 90% of refining capacity and nearly 95% of permanent magnet manufacturing. Its control over the sector has increasingly become a geopolitical tool. Beijing previously tightened rare earth export controls during the latest US-China trade conflict, disrupting supply chains and forcing manufacturers in North America and Europe to temporarily halt production. The latest measures come just days after the Group of Seven (G7) agreed on a new strategy to reduce dependence on any single supplier of rare earths and permanent magnets. The bloc aims to ensure that no country accounts for more than 60% of its imports by 2030, with a longer-term goal of reducing that share to 50%. However, industry experts warn that building alternative supply chains will take years, requiring billions of dollars in investment, new mining projects and expanded refining capacity. As the United States and its allies accelerate efforts to diversify supplies while China reinforces its dominance over the sector, rare earths are rapidly becoming one of the most important strategic battlegrounds in global trade, technology and national security.

US DoW's OSC announces $500m loan for Phoenix Tailings. Shree Mishra The Office of Strategic Capital (OSC), part of the US Department of War (DoW), has disclosed a conditional commitment to provide a $500m loan to Phoenix Tailings. The loan is intended to help expand the company's rare earth element processing operations within the country. The OSC's funding, combined with further private investment, is expected to total around $1bn. This financing aims to significantly increase the production of critical metals at current sites and to establish a new rare earth separation and metallisation facility in the US, known as the Freedom Facility. Once operational, the planned facility will handle multiple types of raw materials to produce both light and heavy rare earth metals used in US industry, defence and allied supply networks. The project focuses on the midstream portion of the rare earth supply chain, which connects sources such as mines and recycling operations to manufacturers and end users. Midstream processing has been identified as a key bottleneck in the production of rare earths in the US, with most refining of these materials currently taking place overseas. The Freedom Facility intends to ease this constraint by offering extensive separation and metallisation capabilities to a range of suppliers and customers including recyclers, manufacturers and government bodies. It will process inputs such as concentrates, recycled feedstocks and secondary materials, aiming to enhance supply chain resilience and adaptability. Under-secretary of War for Research and Engineering Emil Michael said: "I applaud the Office of Strategic Capital on this important conditional investment, which advances the reshoring of rare earth supply chains and strengthens the might of America's defence industrial base. "The focused, unified effort and support from Secretary Hegseth and Deputy Secretary Feinberg have been crucial in addressing supply chain shortages and vulnerabilities in the defence industrial base." The facility is set to use technology and intellectual property developed and controlled within the US, with the goal of reducing dependence on foreign-controlled supply chains. Scheduled to begin operations in 2028, the site will rely on Phoenix Tailings' platform, which is based on proprietary chemistry, specialised industrial equipment and digital tools. As part of the agreement, Phoenix Tailings must complete additional financial, legal, technical and due diligence steps before the loan can proceed to final closing. The company presently runs metallisation sites in Burlington, Massachusetts, and Exeter, New Hampshire.