BMW and Yamaha Motor have invested in Phoenix Tailings, a Massachusetts-based startup revolutionizing rare earth metals production.
These metals, essential for electric vehicles, smartphones, and other advanced technologies, are predominantly processed in China, which has tightened export controls in recent months.
Phoenix Tailings Raises $43 Million to Build Sustainable Rare Earths Facility in New Hampshire
Phoenix Tailings' innovative refining process stands out as environmentally friendly, producing rare earths from mining waste and recycled materials with little to no emissions.
The company aims to challenge traditional refining methods, which are costly and environmentally harmful.
With the $43 million raised in its Series B funding round, Phoenix plans to construct a $13 million facility in Exeter, New Hampshire, Reuters said.
This plant, scheduled to open by June 2025, is projected to produce 200 metric tons of rare earths annually.
The investment, led by venture capital firms including Envisioning Partners, MPower, and Escape Velocity, reflects growing efforts to reduce dependence on China for critical materials. The US government has also shown interest in boosting domestic rare earth production to secure supply chains vital for industries like defense and renewable energy.
Phoenix Tailings has already signed supply contracts worth over $100 million and plans to expand its operations across the US if the Exeter facility proves successful. The company is also pursuing government loans and grants to support its ambitious growth.
Phoenix Tailings Aims to Lead Sustainable Rare Earths Industry with Zero-Emission Process
Nick Myers, CEO of Phoenix Tailings, expressed confidence in the startup's ability to compete in a challenging market, noting that its focus on sustainable processing—not mining—sets it apart.
Unlike other non-Chinese competitors such as MP Materials and Lynas Rare Earths, Phoenix Tailings avoids the high costs and environmental concerns associated with mining operations.
The backing from BMW and Yamaha highlights the critical role rare earths play in the global push for greener technologies.
According to DriveSpark, Kasper Sage, managing partner at BMW i Ventures, praised Phoenix Tailings for its breakthrough in sustainable rare earth refining, which supports the clean energy transition.
This development aligns with a broader Western effort to secure alternative sources for rare earth metals amid geopolitical tensions.
Experts emphasize the need for robust domestic production to ensure long-term sustainability and independence from foreign suppliers.
Phoenix Tailings' zero-emission approach could serve as a model for future resource recovery efforts, demonstrating that environmental responsibility and economic viability can go hand in hand.
As the company grows, it aims to strengthen US supply chains while addressing global environmental challenges.
