Donald Trump Jr.-backed company seizes $620 million government contract

Vulcan Elements, a rare earth magnet startup backed by Donald Trump Jr.’s venture capital firm 1789 Capital, has been awarded a $620 million contract from the US Department of Defense, the Financial Times reported.

The contract is part of a $1.4 billion partnership with the US government and ReElement Technologies to expand and enhance the domestic supply of magnets, according to the company.

Trump Jr. joined 1789 Capital as a partner in 2024. The company reportedly invested in Vulcan Elements about three months ago, according to Bloomberg. In August, the company announced a $65 million funding round led by Altimeter Capital.

The Financial Times reported that this government contract represents the largest ever awarded by the Pentagon’s Strategic Capital Office. This year alone, at least four companies, 1,789 in number, received government contracts, the Financial Times reported. The company also backs SpaceX and Anduril, two companies that have long sold technology to the government.

Vulcan denied to the Financial Times that Trump Jr. was involved in the contract negotiations, as did a spokesman for Trump Jr., who said he “was not involved in negotiations with the government on behalf of the 1789 portfolio companies.”