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Trump administration and private investors sign off on $1.4 billion deal with rare earth startups

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Trump administration and private investors sign off on $1.4 billion deal with rare earth startups

WASHINGTON (AP) — The Trump administration and private investors are partnering with two rare earth startups in a $1.4 billion deal to scale up the nation’s access to materials and technology that is crucial for producing an array of high-tech goods and military equipment.

The investment in Vulcan Elements and ReElement Technologies is the latest stake taken by the U.S. in a handful of private companies — including another rare earths company and chipmaker Intel — since President Donald Trump began his second term in January. The White House has made it a priority to bolster the nation’s supply chain in a market dominated by China.

Vulcan Elements manufactures rare earth magnets, while ReElement processes rare earth mineral ores and recycles old batteries and other products made with rare earths.

Rare earths are used in fighter jets, guided missiles, drones and nuclear submarines as well as smartphones and wind turbines.

The influx of cash will allow Vulcan and ReElement to ramp up their annual magnet production to 10,000 tonnes annually, the companies said.

“Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers,” Secretary of Commerce Howard Lutnick said. “We are laser-focused on bringing critical mineral and rare earth manufacturing back home, ensuring America’s supply chain is strong, secure and perfectly reliable.”

The deal announced this week comes just days after Trump met with Chinese leader Xi Jinping and agreed to cut tariffs on China, which Beijing reciprocated by allowing the export of rare earth elements.

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Before Xi and Trump met last week, China had imposed restrictions that would have required foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China, even if those products were made elsewhere by foreign companies. However, it didn’t eliminate restrictions that were imposed in the spring after Trump imposed his initial round of tariffs.

China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of global rare earths processing.

The deal includes a $620 million loan from the Department of Defense, $50 million of federal incentives from the Department of Commerce and $550 million in private capital.

The Defense Department will receive warrants in both Vulcan and ReElement, with Commerce getting a $50 million equity stake in Vulcan.

In July, the Defense Department agreed to invest $400 million in shares of the Las Vegas-based MP Materials, which runs the only American rare earths mine. The unusual direct investment in the company made the government the largest shareholder in MP Materials.

A week later, MP Materials announced a new $500 million agreement with tech giant Apple to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles.

U.S. Steel, Lithium Americas and Trilogy Metals are among the companies the U.S. government has taken equity stakes in under Trump.

Those investments have drawn skepticism from economists, former government officials and even members of the president’s own party.

While it’s not unprecedented for the government to offer financial support to business and industries, historically those investments usually came during major economic crises.

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The Dictatorship

Tillis slams Hegseth for ‘impulsive decisions not grounded in reality’

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Tillis slams Hegseth for ‘impulsive decisions not grounded in reality’

Sen. Thom Tillis issued a harsh critique of Defense Secretary Pete Hegseth and his “mediocre yes-men” on Saturday for what the North Carolina Republican called a “careless decision” to force out and downgrade U.S. general officers.

“Hegseth continues to surprise and disrespect our greatest allies and some of our best military professionals with impulsive decisions not grounded in reality or good judgment,” Tillis wrote in a post on X.

Tillis posted his comments in response to new reporting from NOTUS that the Pentagon is planning on downgrading the Army’s top command overseeing Europe and Africa, which the publication attributed to five people familiar with the decision. The Pentagon has not confirmed such plans and did not immediately respond to a request for comment from MS NOW regarding the NOTUS report and Tillis’s rebuke of Hegseth.

The move would come amid a larger restructuring of U.S. forces in Europe, including the halting of troop deployments to Germany and Poland, and reverse the merger of the Army’s European and African commands that was ordered during Trump’s first term.

Tillis also called out Hegseth for his planned replacement of Gen. Christopher Donahue, which was also first reported by NOTUS. The senator called the reported move to replace Donahue, a four-star general best known as the last U.S. servicemember to exit Afghanistan in 2021, “a step that is not in the best interests of our nation or our servicemembers.”

“If the rumors are true that Hegseth is trying to sideline Gen. Christopher Donahue, one of our nation’s finest warfighters, by downgrading U.S. Army Europe-Africa to a 3-star command, he is taking another step down a dangerous path,” Tillis said.

Last month, Hegseth fired Army Chief of Staff Gen. Randy George — the Army’s top uniformed officer — and two other generals following a purge of other senior military leaders. Tillis said Donahue has “dedicated his entire career to upholding the high standards and warrior ethos that Hegseth claims he is restoring to our ranks.”

Since the North Carolinian announced he would retire from the Senate when his term is up in January, he has become the rare outspoken GOP critic of the Trump administration. He recently held up Kevin Warsh’s nomination to chair the Federal Reserve, only voting to confirm the former financier once the Department of Justice ended its investigation into outgoing Fed chair Jerome Powell.

Tillis was initially a holdout for Hegeth’s Senate confirmation but ultimately supported him, though he became a vocal critic of the defense secretary, telling BLN last summer that Hegseth appeared “out of his depth” atop the department.

“Hegseth would do well to surround himself with more patriots like General Donahue and to get his henchmen, who are not qualified to carry Donahue’s bag, out of the Pentagon,” Tillis said at the end of his post. “Keep your word, Mr. Secretary: choose meritocracy over your mediocre yes-men.”

Adam Hudacek is a desk associate for MS NOW covering national politics in Washington, D.C.

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‘Clobbered’: Trump vows Cassidy will lose Louisiana’s Senate GOP primary

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“Bill Cassidy is a sleazebag, a terrible guy, who is BAD FOR LOUISIANA.”

And so began President Donald Trump’s social media rant on Saturday, fresh off his trip to Chinaback in Washington and waging his revenge tour in full force on a day when fealty to the president is on the ballot in the Bayou State.

“Now he’s going to get CLOBBERED, hopefully, in today’s BIG election, by two great people!!!” the president continued in his Truth Social postasking GOP voters in Louisiana to cast their ballots for Rep. Julia Letlow, R-La., the candidate Trump is backing to win the high-profile Senate GOP primary contest in a key test of his strength within the Republican Party as he seeks to punish Cassidy for his betrayal.

In his first Truth Social post aimed at Cassidy since returning to U.S. soil, Trump pointed to the two-term senator’s biggest sin: His 2021 vote to convict Trump on impeachment charges related to the Jan. 6 Capitol riots.

“Senator Bill Cassidy of Louisiana is a disloyal disaster. His entire past campaign for the Senate was about ‘TRUMP,’ how he’s with me all the way, and then, after winning, he turned around and voted to IMPEACH me for something that has now proven to be total ‘bullshit!’” Trump wrote.

A third candidate, Louisiana state treasurer John Fleming is also seeking the GOP Senate nomination, and recent polling from Emerson College shows both challengers ahead of Cassidy.

Still, Cassidy has continued to reach out to MAGA voters, saying Friday that the race “is not me versus Donald Trump.”

“If somebody wants someone who can work with President Trump for the good of our country and the good of our state, I’m your candidate,” Cassidy told MS NOW. He did not comment on whether the Republican party has room for those that cross Trump. When asked for comment on the president’s criticism posted Saturday, Cassidy’s campaign responded with a video of Letlow referring to herself as a “progressive leader.”

Cassidy’s battle for political survival illustrates the stark divide within the Republican Party between the establishment and true believers in the MAGA movement.

Richard Logis, a former MAGA activist who defected from Trump’s movement, said Saturday that he believes the MAGA wing of the GOP, which prides itself on being a big-tent party, will continue to splinter as the president’s popularity sinks.

“I do believe that the cracks are there right now,” Logis said on MS NOW’s “The Weekend,” adding, “I think the schisms and the chasms are widening.”

Logis and members of his organization, called Leaving MAGA, are part of a small but vocal community of Republicans mounting an effort to redirect the future of the GOP away from the MAGA movement that Trump created, but their mission faces long odds.

According to polling by YouGov63% of Republicans today identify as MAGA, up from 53% in 2025 and 38% back in 2023, a year after Logis left the movement. However, MAGA identification among registered independent voters remains low in the latest polling data — just 12% — and overall, only one in four voters in the U.S. identifies as MAGA.

Trump has spent much of his second term punishing those within his party who broke with his agenda, including a handful of state senators in Indiana who rejected his push to redraw the state’s congressional map. Of the seven state senators who were challenged by Trump-backed candidates, five lost their reelection bids.

The ideological battle within the GOP came into focus early in Trump’s second term. Multiple Republican lawmakers, including onetime MAGA firebrand former Rep. Marjorie Taylor Greene, R-Ga., and Sen. Thom Tillis, R-N.C., either resigned or announced their retirement after breaking with the president.

Greene, who publicly fell out with the president over his ties to Jeffrey Epstein, said in January that “MAGA purity tests and loyalty demands are going to cost the Republican Party votes.” She left Congress after Trump labeled her a “traitor” for criticizing his administration’s handling of the Epstein files and backed a GOP primary challenger in her district.

The president’s pattern of political retribution began in force following his departure from the White House in 2021, when he used his influence to oust prominent GOP incumbents who voted for his impeachment or conviction, including former Rep. Liz Cheney of Wyoming.

On Saturday night in Louisiana after the polls have closed and the counting is done, Cassidy, one of three Republican senators remaining who voted to convict Trump, may find out whether he’s joining Cheney in early retirement.

Mychael Schnell and Syedah Asghar contributed to this report.

Adam Hudacek is a desk associate for MS NOW covering national politics in Washington, D.C.

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Israel says it killed Hamas military leader in Gaza, architect of Oct. 7 attacks

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Israel says it killed Hamas military leader in Gaza, architect of Oct. 7 attacks

TEL AVIV, Israel (AP) — An Israeli airstrike in Gazakilled the leader of Hamas’ military wing who was one of the last surviving architects of the attacks that triggered the warin late 2023, the Israeli military said Saturday. Hamas confirmed the death.

Izz al-Din al-Haddad was killed on Friday, Israel’s army said, describing him as one of the senior Hamas military commanders who directed the planning and execution of the Hamas-led attacks on Oct. 7, 2023, which killed around 1,200 people in southern Israel and saw more than 250 taken hostage.

A Hamas spokesperson, Hazem Qassem, confirmed the killing on social media.

The ceasefire between Israel and Hamas remains fragile, and the top diplomat overseeing it says it has stalledbecause of the deadlock over disarming Hamas. Both sides have traded accusations of violations. Gaza has seen near-daily Israeli fire with more than 850 people killed in the Palestinian territory since the ceasefire went into effect in October, according to Gaza’s Health Ministry.

The ministry is part of Gaza’s Hamas-run government, but staffed by medical professionals who maintain and publish detailed records viewed as generally reliable by the international community. The ministry overall says Israel’s retaliatory strikes in the war have devastated the Palestinian enclave and killed more than 72,700 people.

Israel said that al-Haddad had assumed the role of Hamas commander after his predecessor, Mohammed Sinwar, was killed. The army said that al-Haddad had surrounded himself with Israeli hostages during the war as a shield against an attack.

Al-Haddad’s family confirmed his death in Friday’s strike to The Associated Press. Six other people, including his wife and daughter, were also killed. His two sons were killed earlier in the war.

His body was wrapped in Hamas and Palestinian flags as it was carried by mourners at Saturday’s funeral in Gaza City.

Al-Haddad joined Hamas when it was established in the 1980s, and was a member of the Qassam Brigades’ Majd section tasked to go after collaborators with Israel. He was also a member of Hamas’ Military Council, the highest group of commanders that played a key role in the attacks that sparked the war.

Israel’s army chief of staff called his killing a significant operation, and said that Israel would continue pursuing its enemies to hold them accountable.

Palestinian man killed in West Bank

Violence flared Saturday in the occupied West Bankwhere Israeli troops shot and killed a 34-year-old Palestinian in the Jenin refugee camp, according to the Palestinian Health ministry.

Hassan Fayyad was fatally shot in a thigh, the Palestinian Red Crescent said. Israel’s military said that troops first fired warning shots at a person trying to infiltrate the camp and shot him when he didn’t comply. They provided him with medical treatment as he was transferred to a hospital, it said.

Israeli troops on Thursday shot and killed a 15-year-old boy in Eastern Lubban town in Nablus, according to the Palestinian Health Ministry. Israel’s military said that it identified three people hurling rocks toward Israeli vehicles and “endangering lives,” and troops fired at them, killing one.

On Friday, settlers set fire to a mosque and vehicles in the village of Jibiya, northwest of Ramallah, Palestinian religious authorities said. Security camera footage showed people pouring flammable material on the mosque and at least two vehicles, said Sabir Shalash, the head of Jibiya’s municipal council. Spray-painted Hebrew slogans were found on the mosque’s walls, he said.

The Ministry of Awqaf and Religious Affairs described the attack as “a cowardly terrorist act” and criticized the international community’s inaction over mounting Jewish settler attacks against Muslim and Christian sites in the occupied Palestinian territories.

The Israeli military and police said that they were deployed to the area and didn’t locate any suspects, but were investigating. The army said that it “strongly condemns” attacks on religious institutions.

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