Connect with us

Hi, what are you looking for?

Stock

BMW, Yamaha Motor back US rare earths startup Phoenix Tailings

By Ernest Scheyder

(Reuters) – BMW (ETR:BMWG) and Yamaha Motor have invested in U.S.-based rare earths processing startup Phoenix Tailings, the latest move by manufacturers to boost production of the strategic metals outside of China.

Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, cell phones and other electronics.

The existing standard to refine these minerals, known as solvent extraction, is an expensive and dirty process that gradually became unpopular in the United States after it was developed in the 1950s but one that Chinese rivals have spent the past 30 years mastering.

Beijing has taken steps in recent months to curb exports, a move that has fueled a scramble across the West for replacement technologies. Phoenix says its process can produce rare earths from mined ore or recycled equipment with little to no emissions.

BMW and Yamaha’s venture capital investment divisions are among several investors – including venture capital funds Envisioning Partners, MPower and Escape Velocity – in Phoenix’s $43 million Series B funding round, which closed on Dec. 20, Phoenix CEO Nick Myers told Reuters in an interview.

Phoenix declined to disclose each investor’s funding.

The company will use the funding to build a $13 million facility in Exeter, New Hampshire, that can produce 200 metric tons of rare earths annually and should open by June 2025, Myers said.

The remaining funding will be used for research, engineering and business development.

The Massachusetts-based company, which has 33 employees, says it has signed supply contracts worth more than $100 million, although it declined to say with whom. If the Exeter facility is successful, Phoenix plans to build larger processing facilities elsewhere in the U.S.

That could help the company achieve its goal of going public within three to five years, Myers said.

MP Materials and Lynas (F:LYI) Rare Earths are two of the largest non-Chinese rare earths miners and processors, although both have struggled amid Chinese competition.

Myers said he believes Phoenix can succeed because it does not operate a mine. The company is applying for U.S. government loans and grants.

Myers added that he believes Donald Trump, who will become U.S. president on Jan. 20, will be a “very strong benefit for onshoring manufacturing” and critical minerals companies.

Phoenix closed a $10 million Series A funding round in August 2021.

This post appeared first on investing.com






    You May Also Like

    Economy

    A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

    Investing

    Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

    Editor's Pick

    Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

    Latest News

    A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com