Rare Earths Revolution: Manufacturers Invest in Sustainable Processing
The quest for sustainable rare earths processing has just received a significant boost. BMW and Yamaha Motor have invested in Phoenix Tailings, a US-based startup that promises to revolutionize the industry with its eco-friendly approach. This strategic move marks a significant shift in the global rare earths landscape, as manufacturers seek to reduce their dependence on Chinese suppliers.
The Importance of Rare Earths
Rare earths, a group of 17 metals, are essential components in the production of electric vehicles, cell phones, and other electronic devices. These metals are used to create magnets that convert power into motion. However, the traditional refining process, known as solvent extraction, is not only expensive but also environmentally hazardous. This outdated method has largely fallen out of favor in the US, but Chinese companies have mastered it over the past three decades.
A New Era of Sustainability
Phoenix Tailings is poised to change the game with its innovative processing technology. This cutting-edge approach can extract rare earths from mined ore or recycled equipment with minimal environmental impact. The company’s commitment to sustainability has attracted a range of investors, including venture capital funds Envisioning Partners, MPower, and Escape Velocity.
Investment and Expansion
Phoenix has secured $43 million in Series B funding, which will be used to build a state-of-the-art facility in Exeter, New Hampshire. This facility, slated to open in June 2025, will have the capacity to produce 200 metric tons of rare earths annually. The remaining funds will be allocated to research, engineering, and business development. With supply contracts worth over $100 million already in place, Phoenix is well-positioned for future growth.
A Bright Future Ahead
If the Exeter facility proves successful, Phoenix plans to expand its operations to other locations in the US. This could pave the way for the company to go public within the next three to five years. By avoiding the costs associated with mining, Phoenix is confident it can outperform its competitors, including MP Materials and Lynas Rare Earths.
Government Support and Industry Outlook
Phoenix is currently applying for US government loans and grants to support its growth. The company’s CEO, Nick Myers, believes that the incoming US administration will be a strong advocate for onshoring manufacturing and critical minerals companies. With its innovative approach and commitment to sustainability, Phoenix is poised to play a leading role in the rare earths revolution.
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