Key facts
- Phoenix Tailings is building a rare earths midstream processing plant in the U.S., with operations planned to start in 2028.
- The company has secured Series B funding from investors including Sumitomo Corporation of Americas, Envisioning Partners, Builders Vision, and In-Q-Tel.
- Phoenix Tailings utilizes innovative, waste-free, and non-toxic processing techniques for rare earth elements.
- The startup is currently producing Neodymium, dysprosium, and Terbium, and plans to expand to battery group metals.
- The company's goal is to break China's dominance in rare earth metal refining.
U.S. rare earths processing startup Phoenix Tailings is leveraging Asian manufacturing expertise and raw material supplies as it prepares to expand operations and build a production facility in the United States. The company, backed by Sumitomo Corporation of Americas' Presidio venture arm and Yamaha Motor Ventures, aims to begin operations in 2028.
Phoenix Tailings has successfully closed its Series B funding round, with significant participation from South Korea's Envisioning Partners, Japan's Sumitomo Corporation of Americas, Builders Vision, and strategic defense-aligned funds like In-Q-Tel. This funding round underscores the growing urgency to rebuild U.S.-controlled refining capacity for rare earth elements and critical metals, challenging China's near-total dominance in the sector.
The startup's proprietary technology focuses on waste-free, non-toxic metal refining, targeting critical rare earths such as neodymium, dysprosium, and terbium, which are essential for electric vehicle motors, wind turbines, and defense systems. Phoenix Tailings is currently commercially producing these metals and plans to expand its capacity and potentially include battery group metals.
Investors view Phoenix Tailings' approach as a strategic bet on commercializing sustainable refining methods that avoid toxic byproducts and reduce reliance on China, which controls over 90% of global rare earth refining. The company's success hinges on scaling its technology, securing consistent feedstock, and establishing downstream partnerships, while navigating the evolving landscape of U.S. policy support for critical minerals.