Donald Trump Jr-backed start-up scores $600mn US federal government deal
By Alex Rogers and Joe Miller, FT
Summary
A small rare-earths start-up, Vulcan Elements, has secured a $620 million Pentagon loan—part of a $1.4 billion public–private package—to expand U.S. production of rare-earth magnets used in weapons systems, drones, submarines, and other defense hardware.
The deal comes three months after Donald Trump Jr.’s venture fund, 1789 Capital, invested in Vulcan. This is one of several companies in 1789’s portfolio that have received major federal contracts or regulatory benefits since President Trump took office. According to the Financial Times, at least four such companies have landed more than $735 million in government deals so far.
Ethics experts quoted in the article say these contracts raise concerns about potential conflicts of interest, given that the president’s son profits from the fund. Both Vulcan and the Pentagon insist Trump Jr. had no involvement in negotiations and that the loan was evaluated on its merits.
1789 Capital, founded by pro-Trump donors, has rapidly expanded—now managing over $1 billion and investing in sectors closely tied to federal policy, from defense tech to crypto. The article notes that Trump family business interests have been advancing globally during the president’s second term, including crypto ventures and real-estate developments.
Vulcan says it will significantly strengthen the domestic magnet supply chain and that Trump Jr.’s investment stake is small and non-influential.
