Japan’s Sumitomo and the impact investment fund Builders Vision have invested in Phoenix Tailings, a U.S.-based startup that processes rare earths. This is part of an effort by manufacturers to increase the production of these essential minerals outside of China.
Rare earths are a group of 17 metals used to make magnets that help turn power into motion, like electric vehicles, cell phones, and other electronics.
The current method for refining these minerals, solvent extraction, is costly and polluting. It became less prevalent in the U.S. after it was created in the 1950s, but Chinese companies have become very good at using it.
China’s exports of rare earths have stopped, causing a rush in the West to find alternatives. Phoenix claims its process can produce rare earths from mined ore or recycled equipment with almost no emissions.
Sumitomo’s Presidio venture arm, along with Builders Vision, Yamaha Motor, and several venture capital funds like Envisioning Partners, MPower, and Escape Velocity, took part in a $33 million investment for Phoenix’s Series B funding round, which closed on April 25.
Phoenix chose not to reveal how much each investor contributed.
The company will use the funding to build a $13 million facility in Exeter, New Hampshire. This facility will first produce 200 metric tons of rare earths each year and is expected to open later this year.
Last December, the company finished the first part of its Series B funding round, raising $43 million. This brings the total amount raised in the round to $76 million.
A $10 million Series A funding round was completed in August 2021.
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