BMW and Other Companies Jointly Establish Rare Earth Processing Facilities

According to a report by Reuters cited on Mining.com, BMW and Yamaha have jointly invested in the US rare earth processing startup Phoenix Tailings, marking the latest move by manufacturers to expand access to this strategic metal.

Rare earth elements consist of 17 metals, some of which can be used to produce magnets that convert electricity into momentum for EVs, mobile phones, and other electronic devices.

The US developed rare earth extraction technology in the 1950s but ceased production due to high costs and severe environmental pollution.

Phoenix Tailings claims its process can extract rare earths from mined ore or recycled equipment with nearly zero emissions.

The joint investment by BMW and Yamaha is among several investors, including venture capital funds Envisioning Partners, MPower, and Escape Velocity.

Phoenix Tailings did not disclose the investment amounts from each company.

The company is using $13 million from this fund to build a facility in Exeter, New Hampshire, capable of producing 200 mt of rare earth metals annually, expected to begin operations in June 2025. The remaining funds will be allocated to research, design, and business development.

Headquartered in Massachusetts, the company has 33 employees and has signed supply contracts worth over $100 million, though it has not disclosed the counterparties. If the Exeter facility proves successful, Phoenix Tailings plans to build larger facilities elsewhere in the US.

This would help the company achieve its goal of going public within 3-5 years.

The company believes it can succeed because it does not operate mines. The company is applying for US government loans and grants.

The company added that the project is expected to receive strong support from the incoming Trump administration for domestic manufacturing and critical mineral enterprises.