BMW and Yamaha Invest in U.S.-based Rare Earths Processing Startup Phoenix Tailings
BMW and Yamaha Motor have joined forces to back a U.S.-based startup, Phoenix Tailings, specializing in rare earths processing, in a move to boost domestic production of strategic metals outside of China. Phoenix Tailings utilizes a unique solvent extraction-free processing method that boasts little to no emissions, promising a cleaner alternative to the established standard.
According to Phoenix’s CEO, the company has garnered $43 million in Series B funding, backed by investors like BMW and Yamaha’s venture capital divisions, to build a processing facility in New Hampshire capable of producing 200 metric tons of rare earths annually. Set to open in June 2025, Phoenix plans to dedicate the remaining funding to research and development.
Rares earths are a valuable group of minerals used in numerous applications, such as electric vehicle motors, cellphone components, and other electronics. China has led the world in rare earth refining, but increasing restrictions on exports have sparked concerns among Western powers. Phoenix says its technology provides a competitive and sustainable solution outside of China.