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Dive Brief:
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BMW i Ventures is among the latest investors to financially back mining and minerals company Phoenix Tailings, which is preparing to scale production of rare earth metals to 200 tons annually, according to a Dec. 30 press release.
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The BMW Group’ 's private equity arm did not disclose its investment stake in the Massachusetts-based startup. However, Kasper Sage, managing partner at BMW i Ventures, said in the release that Phoenix Tailings’ zero-waste, zero-emissions process as “a breakthrough that will significantly advance the sustainable refining of rare earth metals.”
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Phoenix Tailing’s process is “a crucial step forward as many clean energy technologies depend on these critical materials,” Sage added.
Dive Insight:
Billions of dollars are being invested to boost domestic production of components and materials for electric vehicles, including rare earth metals used to produce magnets for EV motors. BMW Group’s largest global manufacturing plant in Spartanburg, South Carolina, for example, is in the midst of retooling to accelerate EV production.
BMW i Ventures joined other investors, including Yamaha Motor Ventures and led by Envisioning Partners, as part of Phoenix Tailings’ latest fundraising round. The mining startup is building a $13 million plant in Exeter, New Hampshire, that is scheduled to start production in June, Reuters reported.
Phoenix Tailings’ refining process extracts rare earth metals from traditional ores, recycled materials, and mining waste — known as “tailings” — without producing toxic byproducts, according to the release. The approach allows Phoenix Tailings to be cost-competitive with traditional processes currently dominated by China and Russia.
“By delivering a sustainable and secure supply of rare earth metals, Phoenix Tailings plays a vital role in strengthening the U.S. supply chain for defense manufacturing and meeting the growing demand for these essential materials in commercial industries,” BMW i Ventures said in the release.
As reliance on advanced technology grows, so does dependence on critical metals, Phoenix Tailings CEO and co-founder Nick Myers said in a statement.
“From automotive and defense to medical devices, rare earth metals are essential to modern manufacturing,” Myers said. “ At Phoenix Tailings, we are ensuring the United States can meet this surging demand through processes that are ethical, sustainable, and economically viable.”