Phoenix Tailings, a U.S. startup focused on processing rare earth metals, has raised $43 million in a Series B funding round. The round, led by Envisioning Partners, attracted prominent investors, including automotive giants BMW and Yamaha, alongside other backers such as Escape Velocity and IQT.
The company, based in Burlington, Massachusetts, is aiming to reduce the U.S. dependency on Asia for the supply of rare earth metals, which are crucial for industries such as automotive, defense, and medical devices. Phoenix Tailings closed a $10 million Series A funding round in 2021 and has now secured additional capital to expand its operations.
The newly acquired funds will support the construction of a new production facility in Exeter, New Hampshire, expected to be operational by summer 2025. Once completed, the facility will have an annual production capacity of 200 tonnes of rare earth metals. The company plans to channel part of the funds into this expansion project, with the remainder directed toward research, technology development, and business growth.
Phoenix Tailings is differentiating itself by utilizing a refining process that is environmentally friendly, producing “little to no emissions.” This contrasts with the traditional method of rare earth metal processing, which often involves harmful solvents.
“As our reliance on advanced technology grows, so does our dependence on critical metals—particularly lesser-known materials like rare earth metals,” said Nick Myers, co-founder and CEO of Phoenix Tailings. “From automotive and defense to medical devices, rare earth metals are essential to modern manufacturing. At Phoenix Tailings, we are ensuring the United States can meet this surging demand through processes that are ethical, sustainable, and economically viable.”
