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Phoenix Tailings secures $76 million in Series B funding to expand its rare earth metal refining operations in the U.S., including a new facility in Exeter, New Hampshire. The company’s technology processes various feedstocks into finished metals critical to automotive and medical sectors. Strategic investors support its goal of establishing a domestic, sustainable, and circular supply chain for rare earth elements.
America’s Rare Earth Problem Finds a New Contender
Phoenix Tailings, a Massachusetts-based company, is working to transform the U.S. rare earth metals supply chain. As global demand for these critical elements grows, the company continues to expand its operations with the goal of creating a domestic alternative to foreign-controlled refining capabilities. Rare earth metals such as neodymium-praseodymium, ferro-dysprosium, dysprosium, and terbium are essential for electric vehicles, MRI machines, transformers, and jet engines. Phoenix Tailings focuses on turning U.S. and allied raw materials into finished rare earth metals, without relying on overseas processing.
A Fresh $33M Infusion Powers a $76M War Chest
Phoenix Tailings extended its initial $43 million Series B funding round to a total of $76 million. The second close of funding was anchored by Escape Velocity, a venture firm created by former Goldman Sachs executives Ganesh Ramani and Ram Sundaram. Other participants include Builders Vision, Yamaha Motor Ventures, M Power, and Presidio, the venture arm of Sumitomo Corporation. The round was led by Envisioning Partners.
This new capital supports the expansion of the company’s rare earth processing technology. According to Nick Myers, co-founder and CEO, the funding enables Phoenix Tailings to move forward with its vision to secure a stable supply of these metals within the United States while maintaining safety, environmental, and cost-efficiency standards.
Scaling Up in New Hampshire With a Game-Changing Facility
Phoenix Tailings is constructing a new commercial facility in Exeter, New Hampshire. The facility will produce 500 tons of rare earth metals per year once fully operational. Initial production, set to begin in summer 2025, will start at 200 tons annually.
This facility will be the first standalone rare earth refining operation in the country capable of accepting various feedstocks such as mine output, recycled materials, coal fly ash, and industrial byproducts. It integrates both separation and metallization, enabling the production of finished metals on-site. These materials will be supplied to domestic and allied manufacturers in sectors including automotive and medical devices.
What Sets Phoenix Tailings Apart From the Rest
Phoenix Tailings has developed technology that combines the economic and safe refining of rare earth elements into final metals and alloys. Its method allows for integrated processing from raw feedstock to finished metal, which eliminates the need for intermediate steps that typically depend on foreign facilities.
This process allows the company to handle multiple types of input materials, including those from recycling streams and industrial waste. Phoenix Tailings operates a 40-ton-per-year commercial facility in Massachusetts and plans to scale with the new Exeter plant.
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From Tailings to Tech: Creating a Circular Supply Chain
The long-term strategy involves sourcing rare earths not just from traditional mining but also from mining waste known as tailings. This supports Phoenix Tailings’ aim to build a circular and self-sufficient domestic supply chain.
Its approach contributes to the development of a sustainable process that reduces reliance on raw extraction and enhances the use of previously discarded materials. The company positions itself to support the demand driven by clean technologies requiring permanent magnets and similar components.
Why Strategic Investors Are Betting Big on Phoenix Tailings
Investors backing Phoenix Tailings cite its ability to scale production and meet long-term contract demands as a key reason for their support. Envisioning Partners Managing Partner Yong Hyun Kim noted that reducing supply chain dependency is not only beneficial for national resilience but also a sound business strategy when paired with cost-effective, cleaner technologies.
Ram Sundaram, Co-Founder of Escape Velocity, emphasized the company’s environmental responsibility and cost competitiveness. He highlighted Phoenix Tailings’ chemistry and engineering solutions as a reason for their investment.
Yamaha Motor Ventures COO Anish Patel explained that although Yamaha does not purchase rare earth materials directly, it sees the upstream supply chain as integral to its business continuity. The investment supports their broader goals in enhancing supply chain robustness and sustainable industrial capabilities.
James Lindsay of Builders Vision said the company’s technology sets a new standard in the mining sector. Their investment aligns with a mission to meet the increasing demand for rare earths and support foundational technologies crucial to a resilient future.
Building a Stronger Foundation for American Industry
Phoenix Tailings continues to gain momentum as it develops domestic refining capacity for rare earth elements. The company’s facilities are structured to meet critical U.S. industrial demand while enabling a more stable and environmentally responsible supply chain. With its expansion into Exeter and growing investor support, Phoenix Tailings contributes to the infrastructure required to supply essential industries with strategic metals refined on American soil.
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