U.S. Army Selects Vulcan Elements for SkyFoundry Drone

The U.S. Army has selected Vulcan Elements to supply rare earth magnets for its SkyFoundry drone initiative. The magnets will be used in the production of brushless motors for small unmanned aircraft.

This contract shows a broader challenge for American drone manufacturing. Rare earth magnets are essential for many drone motors, but other key parts like battery cells also depend on complex supply chains. The United States is working to reduce its reliance on Chinese components, a task complicated by recent Chinese export controls. In April 2025, China began requiring licenses for exports of certain rare earth materials and magnets. Stricter reviews on exports of listed drones, key parts, and related technology to the U.S. Followed in August 2026. Building drones domestically requires reliable sources for the components inside them.

Production and Expansion Plans

Vulcan Elements currently manufactures neodymium iron boron magnets at a small-scale facility in Durham, North Carolina, which opened in 2025. The company is constructing a larger plant in Benson, North Carolina, designed for an annual capacity of 10,000 metric tons of magnets. Vulcan has not announced a firm date for when the Benson facility will reach full production.

The company is also securing sources for the raw rare earth materials needed to make its magnets. It has an offtake agreement with ReElement Technologies and a memorandum of understanding with Ucore. Ucore expects to begin supplying material from a Louisiana facility in 2027. Vulcan is additionally testing material from Energy Fuels. It is not yet clear which material source will support the magnets for the Army contract.

Assessing the Scale of the Goal

Vulcan states that the SkyFoundry program aims to produce one million small drones per year within the United States. For context, the Federal Aviation Administration estimated that 424,516 non-recreational small drones were active in the country in 2025. The Army's annual production target is therefore more than double the size of that recent civilian fleet. This comparison illustrates the ambition of the goal, though it does not specify the number of magnets required.

Public information does not reveal how many SkyFoundry drones Vulcan's current or planned production could support. The company has not disclosed its present annual output, its delivery commitment to the Army, or the magnet requirements per aircraft. Its planned Benson plant capacity will also serve customers outside the drone industry. These details are key for understanding when magnet supply could match the intended scale of SkyFoundry production.

The Foundation for a Domestic Supply Chain

The United States has a foundation to build upon. The U.S. Geological Survey reports substantial domestic rare earth resources and estimates that U.S. Mines produced 51,000 metric tons of rare earth oxide in concentrates in 2025. However, mining output alone does not guarantee a secure magnet supply. The material must also be separated, processed, and manufactured into magnets at scale. Vulcan's existing production and planned expansion represent steps toward building that full domestic capacity. As these facilities and material partnerships develop, their output will provide a clearer picture of the timeline for supplying American-made engines for American-made drones.