BMW and Yamaha Motor Invest in US Rare Earths Startup Phoenix Tailings
BMW and Yamaha Motor are backing Phoenix Tailings, a startup focused on rare earths processing, aiming to reduce reliance on China for these critical materials
BMW, Yamaha Motor, Phoenix Tailings, Rare Earths, New Hampshire, Exeter, Electric Vehicles
Exeter: So, here’s the scoop. BMW and Yamaha Motor just jumped on board with a U.S. startup called Phoenix Tailings. They’re all about rare earths processing, which is super important for making stuff like electric vehicles and smartphones.
These rare earths are a group of 17 metals that help power our gadgets. The usual way to refine them is pretty messy and costly, and it’s been out of favor in the U.S. for a while. Meanwhile, China has been perfecting this process for decades.
Recently, China has been limiting its exports, which has everyone in the West scrambling for alternatives. Phoenix Tailings claims they’ve got a cleaner method that can produce rare earths from both mined ore and recycled materials.
In a recent funding round, they raised $43 million, with BMW and Yamaha’s investment arms joining in. They’re planning to build a $13 million facility in Exeter that should be up and running by June 2025, aiming to produce 200 metric tons of rare earths each year.
They’ve also signed contracts worth over $100 million, though they’re keeping the details under wraps. If all goes well, they might expand and even go public in a few years.
Interestingly, Phoenix isn’t a mining company, which they believe gives them an edge. They’re also looking into government loans and grants to help fund their operations. And with the new U.S. administration, they’re feeling optimistic about the future of domestic manufacturing.