Vulcan Elements, a Durham-based startup manufacturing rare-earth magnets, says it plans to hire around 1,000 workers at a new $1 billion factory in the town of Benson in Johnston County.
Why it matters: Rare-earth magnets have become a prominent friction point in U.S.-China trade talks, as China currently dominates the supply of rare-earth materials.
- The magnets are a critical component of most electronics, including drones and missiles, as well as electric vehicles and smartphones.
Between the lines: Earlier this month, the Trump administration approved a $620 million loan from the U.S. Department of War (formerly the Department of Defense) to Vulcan and took an equity stake in the company to help kick-start its production.
Driving the news: On Tuesday, Vulcan and North Carolina agreed to an incentive package worth around $17.5 million to build the factory in Benson, near the intersection of Interstate 40 and Interstate 95, if the company meets hiring and investment goals.
- Johnston County and the town of Benson will also add incentives worth more than $94 million.
- Vulcan had also been considering expanding in Ohio, according to state officials.
Zoom in: Vulcan will invest approximately $1 billion in the factory and hire 1,000 workers, with roles ranging from engineering and production to administrative management.
- The minimum average wage at the plant will be around $82,000.
- The jobs are expected to be created by 2029.
State of play: Vulcan, founded in 2023, has a small-scale demonstration facility in Durham that has already hit key milestones in production, Vulcan Elements CEO John Maslin previously told Axios.
- The company was founded in Boston, but ultimately chose North Carolina after its executives performed an analysis of American markets with high-level talent, proximity to military installations, and a decent cost of living.
- “The entire reason we built [that] facility was to go and make sure that we understood every nut and bolt of the commercial equipment that we’re going to be using and understanding who our suppliers are,” Maslin says.
Zoom out: Now, Vulcan must execute on an ambitious strategy to re-share rare-earth magnets that have long been dominated by Chinese manufacturers.
- “Minerals have really become the most powerful form of currency when it comes to foreign policy now,” Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies, previously told Axios.
The big picture: It’s the latest economic win for North Carolina, which has announced a wide variety of expansions in the state this year, including a 14,000-job project from plane maker JetZero in Greensboro, a 1,200-job headquarters expansion from Scout Motors in Charlotte and a 400-job biomanufacturing facility from Genentech in Holly Springs…