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Phoenix Tailings, a U.S.-based startup specializing in sustainable rare earth processing, has secured $43 million in Series B funding. Significant investments came from BMW and Yamaha Motor through their venture capital divisions. The financing will fund the construction of a $13 million rare earth production facility in Exeter, New Hampshire, to produce 200 metric tons annually by June 2025.
Rare earth metals are indispensable to modern technology, powering everything from electric vehicles and renewable energy systems to smartphones and advanced defense applications. However, China dominates over 85% of global rare earth processing, posing a supply chain risk for Western industries.
Phoenix Tailings is developing an alternative. Unlike traditional solvent-based extraction, which is environmentally intensive and costly, Phoenix claims its process generates minimal emissions, presenting a cleaner and more sustainable approach. This innovation aligns with broader Western efforts to diversify and secure critical mineral supply chains in the face of China’s tightening export controls.
Backed by contracts exceeding $100 million, Phoenix is already setting its sights beyond Exeter. The company envisions expanding to more extensive processing facilities across the U.S., supporting a domestic supply of rare earths for key industries. CEO Nick Myers emphasized that Phoenix’s non-mining approach sets it apart from established competitors like MP Materials and Lynas Rare Earths, which still struggle to compete against China’s pricing power.
The latest funding will accelerate Phoenix’s research, engineering, and business development, reinforcing its role in the growing U.S. rare earth ecosystem. With U.S. policies increasingly favoring domestic critical mineral production, the company sees a potential IPO within the next three to five years.
By pioneering an environmentally sustainable and geopolitically strategic rare earth processing method, Phoenix Tailings is positioning itself as a key player in reshaping the global supply chain—one that is less dependent on China and more focused on resilience, innovation, and sustainability.