Phoenix Tailings secures funding from BMW i Ventures to scale its innovative rare earth metal refining. The milestone supports a zero-waste, zero-emission automotive future while fortifying US supply chains for clean energy and automotive production
BMW is strengthening its commitment to sustainability and innovation by investing in Phoenix Tailings, a company expected to reshape the rare earth metals industry in the United States. Through its venture capital arm, BMW i Ventures, the German automaker aims to bolster the supply of critical materials essential for clean energy, automotive technologies, as well as others.
Phoenix Tailings, based in Massachusetts, has pioneered a breakthrough in rare earth metal refining, for the task. Using an innovative process that eliminates toxic byproducts, the company extracts metals from both traditional ores and unconventional sources such as recycled materials and mining waste. This approach positions Phoenix Tailings as a potential leader in cost-competitive and environmentally sustainable production—an industry historically dominated by China and Russia.
“Phoenix Tailings has made a breakthrough that will significantly advance the sustainable refining of rare earth elements—a crucial step forward as many clean energy technologies depend on these critical materials,” said Kasper Sage, Managing Partner at BMW i Ventures. “We’re excited to see how this innovation will reshape global supply chains and contribute to a more sustainable future.”
Founded in Cambridge, Phoenix Tailings emerged from a backyard experiment led by four co-founders with a bold vision. Their mission: to redefine how the world produces and processes critical metals. Backed by the US Departments of Energy and Defence, as well as the State of Massachusetts, the company has established itself as a critical player in the field. Early offtake agreements and rigorous validation of its technology point to its potential to scale operations effectively.
The Series B financing round, led by Envisioning Partners, also saw participation from Yamaha Motor Ventures and Escape Velocity. This funding will allow Phoenix Tailings to expand its rare earth processing capacity to approximately 200 tons annually, addressing the surging demand for these materials across industries.
“The investment reflects a growing recognition of the importance of securing rare earth metal supplies to support clean energy transitions and advanced sustainable automotive manufacturing.”
“As our reliance on advanced technology grows, so does our dependence on critical metals—particularly lesser-known materials like rare earth metals,” said Nick Myers, co-founder and CEO of Phoenix Tailings. “From automotive and defence to medical devices, rare earth metals are essential to modern manufacturing. At Phoenix Tailings, we are ensuring the United States can meet this surging demand through processes that are ethical, sustainable, and economically viable.”
Rare earth metals are indispensable to industries such as automotive and defence, where high-performance magnets play a crucial role in advanced systems. By leveraging its innovative extraction methods, Phoenix Tailings is addressing the challenges of global supply chain disruptions and environmental sustainability. The company’s operations contribute to national security by fortifying domestic supply chains, reducing dependency on geopolitically sensitive sources.
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BMW i Ventures, founded in 2011, is an independent venture capital firm with a mission to redefine the future of automotive, sustainability, and manufacturing. With investments in over 80 startups, including Bcomp and Boston Metal, the firm continues to drive innovation in critical sectors.
For Phoenix Tailings, its transformative technology aligns with BMW’s broader goals for sustainability and innovation. The investment reflects a growing recognition of the importance of securing rare earth metal supplies to support clean energy transitions and advanced sustainable automotive manufacturing.
With the demand for critical materials continuing to rise, BMW’s partnership with Phoenix Tailings signals a decisive step towards a greener, more resilient industrial future, and has the potential to play an important role in sustainable automotive manufacturing.
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