Mentioned:Vulcan ElementsReElement TechnologiesUcoreEnergy Fuels
The U.S. Army selected Vulcan Elements to supply rare earth magnets for brushless motors in its SkyFoundry drone initiative. The award backs domestic production of one million small drones per year, addressing a critical gap in U.S. drone supply chains.
What's happening
- Vulcan Elements, based in Durham, North Carolina, won the Army contract to supply neodymium iron boron magnets for SkyFoundry brushless motors.
- The company operates a small production facility that opened in 2025 and is building a larger plant in Benson, North Carolina, designed for 10,000 metric tons of annual magnet capacity.
- SkyFoundry targets production of one million small drones annually in the United States, more than twice the FAA's estimate of 424,516 active nonrecreational small drones in 2025.
- Vulcan has supply agreements with ReElement Technologies, a memorandum of understanding with Ucore for Louisiana-based material beginning in 2027, and is testing material from Energy Fuels.
Why it matters
- Rare earth magnets are critical components in drone motors; onshoring this supply reduces reliance on Chinese exports at a time when China has imposed stricter export controls and licensing requirements.
- The award addresses a fundamental capacity gap: no public figures confirm whether Vulcan's current or planned production can support SkyFoundry's one million drone annual goal.
- Securing domestic rare earth magnet supply is essential to the viability of large-scale U.S. drone manufacturing, as battery cells and other key parts each have separate supply chain constraints.
- U.S. mines produced 51,000 metric tons of rare earth oxide in concentrates in 2025, but converting that to finished magnets at scale remains incomplete.
Going deeper
- Vulcan has not disclosed its current annual magnet output, the delivery commitment to the Army, or the magnet requirement per SkyFoundry aircraft.
- The Benson facility's 10,000 metric ton planned capacity must serve both SkyFoundry and other customers and industries, meaning a fraction of that output may flow to the Army program.
- Vulcan has not announced a firm date for the Benson plant to reach full production capacity.
- China's April 2025 export control rules require licenses for certain rare earth materials and magnets, and August 2026 rules tightened reviews on exports of drones and key parts to the U.S.
The intrigue
- The companies involved in supplying Vulcan have not identified which rare earth material source will serve the Army award, leaving unclear which supply chain path the program will follow.
The fine print
- Vulcan confirmed the selection but did not disclose order quantity, delivery schedule or contract ceiling value.
- Planned Benson capacity of 10,000 metric tons is design capacity, not current output, and timing to full production has not been announced.
Source: DroneLife · Sep 23, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.
