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Sumitomo and Builders Vision, both Japanese companies, have invested in the US startup Phoenix Tailings.

Sumitomo Corporation of Japan and Builders Vision, a fund that invests in impact investments, have invested in Phoenix Tailings of Phoenix, a U.S. rare earths processing company. This is the latest investment by manufacturers looking to increase production outside of China.

Rare earths is a grouping of 17 metals, used in the production of magnets for electric cars, cell phones and electronic devices.

After its development in the 1950s, the solvent extraction process, which is the current standard for the refinement of these minerals, has gradually become unpopular in America. However, Chinese companies have perfected it.

China's rare earth exports have ceased, causing a rush for substitutes in the West. Phoenix claims its process produces rare earths with minimal or no emissions from recycled ore and mined ore.

Sumitomo’s Presidio venture unit, along with Yamaha Motor and Builders Vision and venture capital funds Envisioning Partners and Escape Velocity joined a $33-million tranche for Phoenix’s Series B financing round, which closed April 25, according to the company.

Phoenix refused to reveal the funding of each investor.

The funding will be used to build a 13 million dollar facility in Exeter, New Hampshire that is capable of producing 200 metric tonnes of rare earths per year. It should open by the end of this year.

The company closed its Series B round in December last year with a $43 million first tranche, bringing total funding to $76 millions.

A $10 million Series A round of funding closed in August 2021. (Reporting and editing by Margueritachoy)

(source: Reuters)