# Army Selects Vulcan Elements for Rare Earth Magnets

The U.S. Army has competitively selected Vulcan Elements to supply high-performance Neodymium Iron Boron rare earth magnets for its SkyFoundry drone initiative, which aims to produce one million small unmanned aerial systems annually at Tobyhanna Army Depot, Pennsylvania. This contract, awarded in September 2026, supports the Army's strategic goal of reshoring critical materials manufacturing to the U.S. and reducing dependence on foreign supply chains, particularly China. Vulcan Elements is expanding its domestic production capacity with a new 1.1-million-square-foot facility under construction in Benson, North Carolina, backed by a $620 million loan from the Office of Strategic Capital. This initiative underscores the importance of secure, domestic supply chains for defense manufacturing and national security.

- The contract emphasizes domestic sourcing of rare earth magnets critical for unmanned aerial systems, highlighting procurement priorities for supply chain security.
- Vulcan Elements' expansion in North Carolina signals increased opportunities for suppliers and subcontractors in rare earth processing and magnet manufacturing.
- Procurement professionals should note the Army's focus on vertically integrated, U.S.-based manufacturing capabilities for critical defense components.
- This contract reflects broader DoD efforts to mitigate supply chain risks by investing in domestic industrial base capabilities for emerging defense technologies.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles, Physical Infrastructure
**Published:** September 25, 2026

### Government Entities
- U.S. Army (Army)
- Army Materiel Command
- U.S. Department of Defense (DoD)
- Office of Strategic Capital
- House Natural Resources Committee

### Vendors
- Vulcan Elements (supplier)

### Key Quotes
> As small drone systems become even more critical on the modern battlefield, we're committed to ensuring that our military can manufacture them without having to ask for permission. This isn't just a manufacturing challenge; it's a national security imperative.
> — John Maslin, CEO of Vulcan Elements

### Sources
- [Army Taps Vulcan Elements For Rare Earth Magnets To Support UAS Component Production - Defense Daily](https://www.defensedaily.com/army-taps-vulcan-elements-for-rare-earth-magnets-to-support-uas-component-production/army) - Defense Daily
- [U.S. Army Competitively Selects Vulcan Elements to Supply High-Performance Rare Earth Magnets for SkyFoundry Drone Initiative](https://finance.yahoo.com/technology/articles/u-army-competitively-selects-vulcan-123000377.html) - Yahoo Finance
- ["This marks Vulcan's 10th Defense Department contract." https://t.co/Mb2rqpUObp https://t.co/jZXisD82IK](https://x.com/scottlincicome/status/2103446872656318853) - twitter-defense