Pentagon commits $620M to Vulcan Elements, backed by Don Jr.‘s 1789 Capital

What happened

Vulcan Elements, a rare-earth magnet maker in Durham, North Carolina, took money from 1789 Capital in the summer of 2025. 1789 is the venture fund where Donald Trump Jr. is a partner. The company then had about 30 employees.

On November 3, 2025, the Pentagon’s Office of Strategic Capital announced a conditional commitment to lend Vulcan $620 million and its processing partner ReElement $80 million. The money comes from a $100 billion critical-minerals lending authority Congress created in July, funded under the One Big Beautiful Bill Act. Commerce would take $50 million of Vulcan’s stock and offered $50 million more in CHIPS Act incentives.

In May 2026, ProPublica reported that Peter Navarro, the White House trade adviser, had initiated the deal. It was the only one of dozens of pending loan applications to come from the White House, and staff were told to close it in weeks rather than the usual months. ReElement later dropped out after failing due diligence. Vulcan’s commitment remained. Vulcan’s chief executive said Trump Jr. had nothing to do with it.

Who benefited

Vulcan Elements and its investors, including 1789 Capital and Donald Trump Jr., gained a $620 million government loan and a federal equity stake. For a 30-person startup, that changes its prospects and the value of every early share in it.

Who wanted something

The White House asked for this one loan out of dozens of applicants. The president’s adviser walked it into the lending office. China’s control of magnet supply is a real problem, which made the program easy to defend.

Who lost out

The other applicants waited while this one was rushed. Taxpayers carry the loan risk, and their return depends on a company chosen for reasons the documents do not fully explain. The Pentagon also takes warrants, so the public holds a stake in a company the president’s son’s fund holds a stake in.

Why it matters

This is the first award to a Trump-family-linked company that reporting traces to the White House itself rather than to an agency acting on its own. The money is conditional and may never fully disburse. The intervention already happened.

Sources Department of War, Office of Strategic Capital (primary)Carolina JournalNPR (interview with ProPublica)Popular Information