Vulcan Elements, a rare earth magnet startup backed by Donald Trump Jr.'s VC firm 1789 Capital, has won a $620 million contract from the U.S. Department of Defense, the Financial Times reported.
The deal is part of a $1.4 billion partnership with the U.S. government and Reelement Technologies to expand and strengthen the domestic supply of magnets, the company said.
Trump Jr. joined 1789 Capital as a partner in 2024. The company is said to have invested in Vulcan Elements about three months ago, according to Bloomberg. In August, the company announced a $65 million Series A led by Altimeter Capital.
The government contract is the largest ever awarded by the Department of Defense's Strategic Capital Office, the FT reported. The FT reports that this year alone, at least four companies, 1,789 companies, have signed government contracts. The company is also a backer of SpaceX and Anduril, which have long sold technology to governments.
Barkan denied to the FT that Trump Jr. was involved in contract negotiations, and a spokesperson for Trump Jr. said: “We are not involved in negotiations with the government on behalf of 1789's portfolio companies.”