New York. The United States government will become a shareholder in the start-up Vulcan Elements, specialized in the transformation of rare earths, the company reported on Monday, in an attempt by Washington to reduce its dependence on China to obtain these metals.

The young company based in Durham (North Carolina) manufactures powerful magnets for industry, from an alloy that includes neodymium, one of the rare earth metals. These magnets are a crucial component for many high-tech sectors.

Vulcan Elements also plans to process rare earths at its plant located in the Research Triangle Park industrial park near Durham.

The operation links the US government with private investors, who will inject $550 million into the capital of Vulcan Elements, according to a statement.

The United States, for its part, will provide a loan of $620 million and a grant of $50 million in exchange for receiving Vulcan shares of an equivalent value.

The government will also lend $80 million to ReElement Technologies, another American company dedicated to the production of rare earths ready for processing, which had already signed a supply agreement with Vulcan in August.

“Our investment in Vulcan Elements will accelerate the production in the United States of magnets derived from rare earths for the American industry,” said Secretary of Commerce Howard Lutnick, quoted in the statement.

In the context of trade tensions with the United States, China has progressively restricted its exports of rare earths, of which it controls more than 90 percent of the world refining market.

After a change of position in early October, US President Donald Trump threatened to increase the tariffs imposed on China by 100 percent. But both countries finally reached an agreement last week, which includes suspending new restrictions on rare earths.