Former Goldman Sachs executives have backed an extended US$76 million funding round for US-based Phoenix Tailings, which aims to expand domestic supplies of neodymium-praseodymium, ferro-dysprosium, dysprosium, terbium and other rare earths recovered from mine and recycled waste.
Escape Velocity and its founders Ganesh Ramani and Ram Sundaram have anchored a $33 million second close of Phoenix’s previously announced $43m series B funding round. Ramani and Sundaram previously worked at investment bank, Goldman Sachs.
New investments from Builders Vision, Yamaha Motor Ventures, MPower Partners and Presidio Ventures, the venture capital arm of Sumitomo Corporation, helped Phoenix extend the round, which was originally backed by BMW, Envisioning Partners, MPower and Escape Velocity.
The Massachusetts-based company, created by Massachusetts Institute of Technology (MIT) alumni, has raised more than $150m to date to fund development of its MIT process and build a 200 tonnes per annum plant in Exeter, New Hampshire, that is reportedly scheduled to come on line next month.
Phoenix is also said to be planing to build larger processing facilities in the US and could contemplate a public share issue in the next few years.
“We’re witnessing the consequences of relying on a geopolitical competitor for materials essential to our economy and national defence,” Phoenix CEO and co-founder Nicholas Myers said this week.
“But this moment is also an opportunity.
“We have the resources, the talent and now the momentum to build a secure rare earth supply chain right here in the United States. With this new funding, Phoenix Tailings is accelerating that vision; delivering critical metals without compromising on safety, environmental standards or cost.
“The future of rare earths can and should be American-led.”
