A conspiracy theory being perpetuated by Democrats claims that Donald Trump Jr. owns a rare earth mineral company that received a $620 million loan from the Department of Defense, supposedly representing corruption by the Trump administration. As is often the case with attacks on the current administration, this narrative is false. Here is the truth.
Vulcan Elements, a firm neither owned nor operated by Donald Trump Jr., received a $620 million loan from the Pentagon’s Office of Strategic Capital in November 2025. This is the largest loan ever issued by OSC, which was established in December 2022 under the Biden administration. The loan is part of a broader Pentagon initiative to expand domestic production of rare earth magnets. ReElement Technologies, another firm neither owned nor operated by Donald Trump Jr., received an $80 million loan from OSC as part of the same effort.
Donald Trump Jr.’s involvement is limited and indirect. He is a partner at 1789 Capital, a venture capital firm that made a minority equity investment in Vulcan Elements in August 2025, approximately three months before the Department of Defense loan was announced. That investment was part of Vulcan’s Series A funding round, which raised $65 million and was led by Altimeter Capital, a firm unrelated to Trump Jr. 1789 Capital was one of several investors participating in the round.
So, to recap, Trump Jr. does not own Vulcan Elements, does not run the company, has no direct equity stake in Vulcan Elements based on public records, and does not serve on Vulcan’s board or in any advisory capacity. He does work as a partner at 1789 Capital, participates in investment decisions at the firm, has indirect exposure through 1789’s portfolio, and would benefit financially if 1789’s investments appreciate.
The Pentagon explicitly stated Trump Jr. was not involved in any aspect of the conditional loan commitment discussions. Both Commerce Department and Vulcan officials denied Trump Jr. played any role in securing the loan.
Media reports have characterized Vulcan as being “backed by” Trump Jr.’s firm. This language is used to intentionally misrepresent the relationship by suggesting a primary financial supporter, controlling interest, or main sponsor role. In reality, 1789 Capital was one investor among several, was not the lead investor, holds a minority stake, and has no indication of board seats or operational control.
Breaking U.S. dependence on China for rare earth minerals is explicitly documented as a national security priority across multiple administrations and policy documents. The Biden-era 2024 National Defense Industrial Strategy set a DOD goal to develop a complete mine-to-magnet rare earth supply chain by 2027. Since 2020, DOD has committed over $439 million toward building domestic rare earth supply chains. The Biden Administration issued multiple executive orders and fact sheets identifying rare earth elements as critical for national security and economic prosperity.
China currently controls 60-70% of rare earth mining, 85-90% of processing capacity, and 90-93% of magnet manufacturing. The country also controls 77% of cobalt processing, 92% of rare earth elements processing, and 91% of graphite processing. Rare earths are essential for F-35 fighter jets, Virginia-class and Columbia-class submarines, Tomahawk missiles, radar systems, and smart bombs and guided munitions. Each gas-powered car contains 40 rare earth magnets. Electric vehicles require even more.
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