Vulcan Elements loan scrutiny widened after Democratic lawmakers asked the White House to explain a reported Pentagon role in financing totalling $620 million for the rare-earth magnet startup.
The company has financial ties to 1789 Capital, a venture capital firm linked to Donald Trump Jr., according to ProPublica.
Senators Elizabeth Warren, Richard Blumenthal and Mazie Hirono joined Representatives Jason Crow and Mike Levin in sending the letter Tuesday to White House Chief of Staff Susie Wiles. They asked for details on the White House’s role by June 16.
The lawmakers cited a ProPublica investigation that said Peter Navarro, President Donald Trump’s senior trade and manufacturing adviser, made the lending request. They said the report raised questions about whether taxpayer money benefited the president’s family.
Vulcan Elements announced in November that it received a $620 million direct loan from the Pentagon and $50 million from the Commerce Department. The company said the funding would support annual U.S. production of 10,000 metric tons of magnets.
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ProPublica reported that 1789 Capital took an undisclosed stake in Vulcan Elements about three months before the loan closed. The Pentagon said Trump Jr. played no role in the deal, while Vulcan Elements denied political favouritism.
The Washington Post reported that Vulcan first won a defence contract during the Biden administration and passed diligence by multiple agencies. The lawmakers’ letter keeps the loan under congressional scrutiny as Washington weighs rare-earth supply chains and conflict-of-interest concerns
