Trump Jr.-backed firm wins $620M government contract
▼ Summary
– Vulcan Elements, a rare-earth magnets startup, has secured a $620 million U.S. defense department contract as part of a larger $1.4 billion government partnership.
– The startup is backed by 1789 Capital, a venture firm where Donald Trump Jr. became a partner in 2024 and which invested in Vulcan Elements approximately three months ago.
– This contract is the largest ever made by the Pentagon’s Office of Strategic Capital, according to the Financial Times.
– At least four companies backed by 1789 Capital have received government contracts this year, and the firm also invests in major government contractors SpaceX and Anduril.
– Both Vulcan Elements and a spokesperson for Donald Trump Jr. denied his involvement in the government contract negotiations.
A rare-earth magnets company supported by a venture capital firm where Donald Trump Jr. is a partner has been awarded a substantial government contract. Vulcan Elements, a startup specializing in rare-earth magnets, has secured a $620 million contract from the U.S. Department of Defense. This agreement forms part of a larger $1.4 billion collaboration with the U.S. Government and ReElement Technologies, aimed at strengthening and expanding the domestic supply chain for these critical components.
The venture firm, 1789 Capital, brought Trump Jr. on as a partner earlier this year. Reports indicate the firm invested in Vulcan Elements approximately three months ago. In a separate funding round during the summer, Vulcan announced it had raised $65 million in a Series A round led by Altimeter Capital.
This defense contract is noted as the largest ever issued by the Pentagon’s Office of Strategic Capital. It highlights a trend of government deals flowing to companies within 1789 Capital’s portfolio, with at least four of its firms receiving contracts this year alone. The venture firm also holds stakes in other major government contractors like SpaceX and Anduril, both established providers of technology to federal agencies.
Representatives for both Vulcan Elements and Donald Trump Jr. have stated that he was not involved in the negotiations for this specific government contract. A spokesperson clarified that Trump Jr. “had no involvement in negotiations with the government on behalf of 1789’s portfolio companies,” distancing his advisory role from the procurement process.
(Source: TechCrunch)
