Phoenix Tailings Secures $43mn to Expand Rare Earths Production with BMW and Yamaha Backing

Phoenix Tailings

Phoenix Tailings, a U.S.-based rare earths startup, has recently closed a substantial $43 million Series B funding round, with notable investments from the venture arms of automotive giants BMW and Yamaha Motor. This significant financial boost aims to escalate the company's production capabilities to 200 tonnes per year at its pilot facility in Burlington, Massachusetts.

Strategic Investments Enhance Production Capabilities

The funding round was spearheaded by Envisioning Partners and saw participation from other prominent U.S. venture capital firms including Escape Velocity and In-Q-Tel (IQT), as well as Yamaha Motor Ventures and BMW i Ventures. The influx of capital will not only enhance Phoenix Tailings' production capacity from its initial 120 tonnes per year but also supports its mission to refine heavy rare earths such as dysprosium, terbium, and the neodymium-praseodymium blend, critical for various high-tech and green technologies.

Pioneering Sustainable Rare Earth Refining Technologies

Phoenix Tailings is at the forefront of developing more environmentally friendly refining processes that utilize recyclable solvents and water, which significantly reduce carbon emissions compared to traditional methods. This innovative approach involves extracting rare earth metals from mining waste or recycled equipment, where the oxidized metal is processed in molten salt using electricity.

In response to growing geopolitical tensions and the recent Chinese restrictions on rare earth technology exports, Phoenix Tailings' advancements come at a crucial time. The U.S. government has emphasized the importance of establishing a robust domestic supply chain for rare earths, vital for manufacturing electric vehicles, electronics, wind turbines, and military equipment.

Looking ahead, Phoenix Tailings plans to inaugurate a new facility in Exeter, New Hampshire by June. Success at this new site could lead to further expansion across the United States, potentially alleviating some of the current dependencies on foreign rare earth supplies.