Vulcan Elements, a rare-earth magnets startup backed by Donald Trump Jr.’s VC firm 1789 Capital, has secured a $620 million contract from the U.S. Department of Defense, as reported by the Financial Times.
The contract is part of a $1.4 billion partnership with the U.S. government and ReElement Technologies to expand and boost the domestic supply of magnets, according to the company.
Trump Jr. joined 1789 Capital as a partner in 2024. The firm is said to have invested in Vulcan Elements around three months ago, according to Bloomberg. In August, the company announced a $65 million Series A led by Altimeter Capital.
This government contract represents the largest ever made by the Pentagon’s Office of Strategic Capital, the FT reported. This year alone, at least four 1789 companies have received government contracts, FT reported. The firm is also a backer of SpaceX and Anduril, two long-time sellers of tech to the government.
Vulcan denied to FT that Trump Jr. had involvement with the contract negotiations, as did a spokesperson for Trump Jr., who said he “had no involvement in negotiations with the government on behalf of 1789’s portfolio companies.”
