BMW strengthens source of rare earth materials for electric vehicles

Diving certificate:

• BMW i Ventures is among the latest investors to provide financial backing to mining and minerals companies According to a Dec. 30 press release, Phoenix Tailings is preparing to increase production of rare earth metals to 200 tons per year.
• BMW Group's private equity division did not disclose its investment in the Massachusetts-based startup. However, Kasper Sage, managing partner at BMW i Ventures, said in the press release that Phoenix Residues“Zero-waste-zero emissions process as “a breakthrough that will significantly advance the sustainable refining of rare earth metals.”
• Phoenix Tailing's process is “a critical step forward as many clean energy technologies depend on these critical materials,” Sage added.

Insight into the dive:

Billions of dollars are being invested to boost domestic production of electric vehicle components and materials, including rare earth metals used to make magnets for electric vehicle motors. For example, the BMW Group's largest production plant in the world in Spartanburg, South Carolina, is in the middle of a conversion to accelerate the production of electric vehicles.

BMW i Ventures joined other investors, including Yamaha Motor Ventures and led by Envisioning Partners, as part of Phoenix Residues' last round of donations. The mining startup is building a $13 million plant in Exeter, New Hampshire, that is scheduled to begin production in June, according to Reuters.

Phoenix ResiduesThe refining process produces rare earth metals from traditional ores, recycled materials and mining waste – known as “Residues” – without producing toxic byproducts, the press release says. The approach allows Phoenix Tailings to be cost competitive compared to traditional processes currently dominated by China and Russia.

“By providing a sustainable and secure supply of rare earth metals, Phoenix Tailings plays a critical role in strengthening the U.S. defense manufacturing supply chain and meeting the growing demand for these important materials in the commercial industry,” BMW i Ventures said in the Press release.

As reliance on advanced technology increases, so does reliance on critical metals, Nick Myers, CEO and co-founder of Phoenix Tailings, said in a statement.

“From automotive and defense to medical devices, rare earth metals are essential to modern manufacturing,” Myers said. “At Phoenix Tailings, we are ensuring that the United States can meet these increasing needs through ethical, sustainable and economically viable processes.”