US-based rare earth producer Phoenix Tailings has secured $40.2 million in an oversubscribed B-3 amplification round, increasing its total Series B funding to $116.6 million. The round was offered to existing investors and selected strategic partners and comprised $30.2 million in equity along with $10 million in venture debt provided by Nomura.
The fresh capital will enable Phoenix Tailings to expand beyond its current production of neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb) to include samarium (Sm), yttrium (Y), and additional critical rare earth elements. The funding supports the development of a fully integrated domestic production platform designed to supply strategic materials essential to energy, defense, and advanced manufacturing industries.
New strategic participants in the round include Traxys, Eni Next, and Geodesic Alliance Fund. The financing also drew participation from Aether VC and continued backing from Olive Tree Capital, Envisioning Partners, and MPower Partners, reflecting sustained investor support for strengthening U.S. critical mineral capabilities.
Nicholas Myers, Co-Founder and CEO of Phoenix Tailings, said the targeted amplification round was launched at a pivotal stage as the company prepares to scale output in response to rising global demand. He noted that bringing in experienced global partners will accelerate execution and capacity expansion, reinforcing the company’s role in delivering reliable rare earth supply for the United States and allied nations.
Traxys, known for its global commodities trading and logistics expertise in critical minerals, joins as a strategic partner to help enhance market access and supply chain coordination. Myers highlighted the firm’s cross-border experience and deep understanding of rare earth markets as instrumental in strengthening integrated supply capabilities.
Clara Andreoletti, CEO of Eni Next, stated that critical metals underpin the future of electrification, mobility, and next-generation infrastructure, adding that Phoenix Tailings’ differentiated technology and scale-up roadmap position it to play a key role in building resilient supply chains.
Tom Gillespie, Head of Geodesic Capital’s Alliance Fund, emphasized the importance of U.S.–Japan cooperation in securing critical mineral supply chains, noting that support for Phoenix advances allied industrial capacity and long-term economic resilience.
Phoenix Tailings is a US-based rare earth metals producer focused on building a secure and circular supply chain that converts industrial tailings into high-value rare earth metals. The company operates domestic refining facilities in Massachusetts and New Hampshire, supplying finished rare earth metals and alloys to customers worldwide.
Phoenix Tailings has developed proprietary processing technology designed to produce rare earth elements economically, safely, and without emissions. The company is supported by a strong group of investors and strategic partners, including IQT, Builders Vision, Yamaha Motor Ventures, Techstars, Presidio Ventures (Sumitomo Corporation), Envisioning Partners, and others.
