U.S. Army Selected Vulcan Elements for Drone Magnets
The supplier will provide essential materials for the government's SkyFoundry drone production initiative.
Updated on Sept. 23, 2026 in Manufacturing
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The U.S. Army has selected Vulcan Elements to supply rare earth magnets for its SkyFoundry drone initiative. This move supports the national effort to reduce reliance on Chinese components for drone manufacturing.
Why it matters
The program aims to secure a domestic supply chain for critical technology as China has increasingly restricted the export of rare earth materials and drone components to the U.S.
Vulcan Elements is designing its upcoming Benson, North Carolina, plant to reach an annual capacity of 10,000 metric tons of magnets. This follows a 2025 baseline where U.S. domestic mines produced 51,000 metric tons of rare earth oxide.
The players
Vulcan Elements
A specialized manufacturer of rare earth magnets based in North Carolina.
U.S. Army
The branch of the U.S. Armed Forces responsible for the SkyFoundry drone initiative.
Ucore
A rare earth elements resource and processing company partnered with Vulcan Elements.
ReElement Technologies
A materials technology company that holds an offtake agreement with Vulcan Elements.
The details
Vulcan Elements currently manufactures neodymium iron boron magnets at a smaller facility in Durham, North Carolina. The company has secured supply chain partnerships through an offtake agreement with ReElement Technologies and a memorandum of understanding with Ucore.
Timeline
The Durham facility opened in 2025.
China mandated licenses for rare earth exports in April 2025.
China imposed stricter drone-related export reviews in August 2026.
The U.S. Army selected Vulcan Elements on September 23, 2026.
Ucore is expected to begin supplying materials from Louisiana in 2027.
Market Landscape
This partnership reflects a strategic pivot as the U.S. manufacturing sector attempts to decouple its drone supply chains from China. This shift mirrors an industry-wide effort to insulate defense technology from volatile international export controls.
While this initiative focuses on defense procurement, it signals a broader shift that could eventually impact the cost and availability of domestic drone components. Consumers and commercial operators may see more locally sourced hardware as these large-scale manufacturing facilities come online.
The takeaway
The U.S. is prioritizing domestic magnet production to insulate its drone initiative from foreign export mandates. This development highlights a broader transition toward localized manufacturing for critical defense technologies.
What happens next
Ucore is scheduled to begin supplying rare earth materials from its Louisiana operations in 2027.
Further reading
Learn more about the current state of Manufacturing in the U.S. on our industry page.
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