Phoenix Tailings Secures $116M to Boost U.S. Rare Earth Production

EXETER, N.H. – February 19, 2026 – Phoenix Tailings, a U.S.-based producer of critical materials, has secured $40.2 million in a strategic funding round, catapulting its total Series B financing to $116.6 million. The capital infusion is set to accelerate the company's efforts to build a fully integrated domestic supply chain for rare earth elements, a group of metals indispensable to modern defense, energy, and manufacturing sectors.

The oversubscribed B-3 amplification round, consisting of $30.2 million in equity and $10 million in venture debt from Nomura, was extended exclusively to existing investors and a select group of new strategic partners. These partners, including global commodities firm Traxys, Eni Next, the venture arm of Italian energy giant Eni, and the U.S.-Japan focused Geodesic Alliance Fund, signal strong international confidence in the company's mission to onshore critical mineral processing.

“As we prepare to massively scale production to meet surging global demand, we are bringing together powerhouses from around the world to accelerate execution and expand capacity,” said Nicholas Myers, Co-Founder and CEO of Phoenix Tailings. “This round strengthens our ability to deliver the rare earth production the United States and its allies require.”

Bolstering a Fragile Domestic Supply Chain

The investment arrives at a pivotal moment for U.S. economic and national security. While the United States is the world's second-largest miner of rare earth ores, primarily from the Mountain Pass mine in California, it remains critically dependent on foreign nations for the complex processing and refining stages. Over 80% of the world's rare earth processing capacity is concentrated in China, creating a significant vulnerability for American industries that rely on these materials.

Rare earths like neodymium, praseodymium, dysprosium, and terbium are essential components in high-strength permanent magnets used in everything from F-35 fighter jets and missile guidance systems to the electric motors in EVs and generators in wind turbines. With global demand for these magnetic rare earths projected to triple by 2035, the strategic imperative to develop a secure, domestic source has never been more urgent.

Phoenix Tailings is directly confronting this supply chain gap. The new capital will enable the company to expand its production capabilities beyond its current output of neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb). The expansion will now include other vital elements such as samarium (Sm) and yttrium (Y), allowing the company to offer a full spectrum of strategic materials from its facilities in Massachusetts and New Hampshire.

A Technological Edge in a Dirty Industry

Historically, rare earth processing has been an environmentally hazardous endeavor, notorious for producing vast quantities of toxic waste and significant carbon emissions. Traditional methods can generate up to 2,000 tons of toxic waste for every ton of rare earth element produced, a primary reason the industry was offshored decades ago.

Phoenix Tailings aims to rewrite this narrative with its proprietary, emissions-free technology. The company utilizes a novel zero-waste metallurgy process that extracts critical materials from mining waste, known as tailings. This circular economy approach not only avoids the need for new mining but also cleans up legacy environmental liabilities.

At the core of its innovation is an electrochemical extraction method involving molten salt electrolysis. This process allows for the reuse of key chemical reagents, dramatically reducing energy consumption and eliminating the toxic byproducts associated with conventional solvent extraction techniques. By integrating both the separation of rare earth oxides and their conversion into finished metals into a single, streamlined process, the company can produce high-purity metals and alloys ready for use by manufacturers.

This technological advantage is a key draw for investors focused on sustainability. “Critical metals are foundational to the future of global energy, from electrification to advanced mobility and next generation infrastructure,” said Clara Andreoletti, CEO of Eni Next. “Phoenix Tailings is the leading rare earth production company, with differentiated technology and a clear path to scaled production that makes this global energy future possible.”

Strategic Capital for a Strategic Mission

The composition of the investor group underscores the multi-faceted importance of Phoenix Tailings' mission. The inclusion of Traxys, a global leader in commodity trading and logistics, provides a direct channel to global markets and deep expertise in navigating complex mineral supply chains.

“Traxys is the premier trading house in the world for rare earths,” Myers added. “With Traxys as a partner, we are closing supply chain gaps and building a fully integrated rare earth platform that delivers security, transparency, and reliability to global customers.”

The participation of the Geodesic Alliance Fund highlights the geopolitical significance of a resilient rare earth supply chain among allied nations. “The U.S.–Japan alliance is foundational to global security, economic resilience, and technological leadership,” noted Tom Gillespie, Head of the Geodesic Capital’s Alliance Fund. “By backing Phoenix, we are strengthening transpacific collaboration that will drive durable, allied production capacity and long-term economic advantage.”

The round also saw strong continued support from early backers like Olive Tree Capital, the company's Series A lead investor. “I have had the privilege of watching Phoenix grow from an idea into one of the top rare earth producers in the world,” said Nichola Eliovits, Founder and CEO of Olive Tree Capital. “This round brings in the strategic partners needed to accelerate that momentum and scale production to meet global demand.”

The company's new facility in Exeter, New Hampshire, is on track to begin operations with an initial annual capacity of 200 metric tons of finished metal, with a clear path to scale production to over 1,000 tons. This capacity is not just a commercial goal but a strategic asset, potentially capable of supplying the entire U.S. defense industrial base, thereby solidifying a critical link in America’s industrial and national security infrastructure.