Summary:
Sumitomo and Builders Vision invest in Phoenix Tailings to enhance U.S. rare earths production.
Rare earths are vital for technology such as electric vehicles and cell phones.
Phoenix Tailings offers a low-emission process for extracting rare earths from ore and recycled materials.
The startup secured $33 million in its Series B funding, aiming for a $13 million facility in New Hampshire.
Total funding for Phoenix's Series B reaches $76 million.
Overview of the Investment
Japan's Sumitomo and Builders Vision, an impact investment fund, have recently invested in Phoenix Tailings, a U.S.-based startup focused on rare earths processing. This strategic move aims to bolster the production of these crucial minerals outside of China.
The Importance of Rare Earths
Rare earths, comprising a group of 17 metals, are essential for manufacturing magnets that convert power into motion for electric vehicles, cell phones, and various other electronics. However, the traditional method of refining these minerals, known as solvent extraction, has been criticized for being both expensive and environmentally damaging. Although popular in the U.S. in the 1950s, this method has since fallen out of favor as Chinese companies have perfected it.
Current Market Dynamics
With China's exports of rare earths coming to a standstill, there is a heightened urgency in the West to find alternative sources. Phoenix Tailings claims that its innovative process can extract rare earths from both mined ore and recycled equipment with minimal to zero emissions.
Funding Details
Recently, Phoenix Tailings secured a $33 million investment as part of its Series B funding round, which closed on April 25. This funding round included participation from Yamaha Motor, along with several venture capital firms such as Envisioning Partners, MPower, and Escape Velocity. Although specific investment amounts from each entity remain undisclosed, the company plans to utilize this funding to construct a $13 million facility in Exeter, New Hampshire, which is expected to produce 200 metric tons of rare earths annually upon its opening later this year.
Funding History
This latest tranche brings the total of Phoenix's Series B funding to $76 million, following a previous $43 million round, alongside an earlier $10 million Series A round concluded in August 2021.
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