“Rare earth processing is ultimately a technology race,” says Nick Myers, CEO and co-founder of Phoenix Tailings, an emerging builder of a fully integrated rare earth production platform spanning extraction, separation, refining and metallization with a zero waste and zero emissions philosophy that is based in Exeter, New Hampshire. “Success comes from having the best chemistry, the best industrial hardware, and now the best digital infrastructure.”
To bolt on that final element, in May his company acquired Boston-based technology firm Machinery Partner, expanding Phoenix Tailings’ capabilities in artificial intelligence, automation and digital manufacturing infrastructure. The deal comes about three months after raising $40 million more in recent funding efforts that have brought in a total of $116 to back its expansion and platform development plans.
“Phoenix Tailings has built the strongest rare earth technology platform in the world, and Machinery Partner accelerates our ability to continuously improve with every production run through AI, automation, and operational intelligence.” The acquisition adds a third pillar of innovation to Phoenix Tailings’ already best in class chemistry and industrial hardware expertise, bringing advanced digital infrastructure, says Myers.
Machinery Partner is basically an industrial equipment dealership with strong information technology capabilities at its core. Founded in 2020, it provides a digital platform for selling, servicing and financing heavy equipment in sectors like aggregate, mining, concrete and recycling. Co-founders Clement Cazalot and David Blair will join Phoenix Tailings as Chief Operating Officer and Vice President of Data and Automation, respectively. Both are experienced multi-time founders with backgrounds in advanced software innovation and digital infrastructure.
“Rare earth independence will not be achieved by simply rebuilding legacy industrial systems,” said Clement Cazalot, co-founder and CEO of Machinery Partner. “The future belongs to companies that combine advanced chemistry, industrial hardware, and digital intelligence into one integrated technology platform. Together, Phoenix Tailings and Machinery Partner are building the technological foundation that can outcompete global incumbents and accelerate America’s rare earth freedom.”
Machinery Partner’s operating system and AI platform are already deployed across hundreds of industrial sites in the United States. At Phoenix Tailings, the technology will be integrated across refining operations to create a highly automated, data driven manufacturing platform for rare earth processing.
The integration is expected to deliver several strategic advantages:
- Higher production yields through AI assisted chemistry optimization
- Increased equipment uptime through predictive monitoring and diagnostics
- Lower production costs through automation and process efficiency
- Faster deployment of refining systems through standardized digital infrastructure
Rare earth processing remains one of the most technologically complex industrial sectors in the world, requiring expertise across chemistry, materials science, and manufacturing systems, notes Phoenix Tailings. “To break the Chinese monopoly on rare earth processing, America cannot simply replicate Chinese approaches and expect them to succeed in the Western world. The United States must do what it does best: build breakthrough technologies that dramatically outpace the competition.”
New funding & strategic partners
The new funding was announced in mid-February when Phoenix Tailings closed a $40.2 million oversubscribed B-3 amplification round, bringing total Series B funding to $116.6 million. Consisting of $30.2 million in equity and $10 million in venture debt, the round was offered exclusively to existing investors and select strategic partners.
Proceeds will expand the company’s capabilities beyond its current production of neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb) to include samarium (Sm), yttrium (Y), and other critical rare earth metals. The round added several new strategic partners including Luxembourg-based global minerals trader Traxys, Italian energy company Eni Next, and Geodesic Alliance Fund, with further support from existing investors.
“We made the deliberate decision to open a small amplification round available only to a select group of partners at a critical moment for our company,” said Myers. “As we prepare to massively scale production to meet surging global demand, we are bringing together powerhouses from around the world to accelerate execution and expand capacity.“
“Traxys is the premier trading house in the world for rare earths, with deep expertise operating across borders and navigating complex global markets,” he added. “Their understanding of critical mineral flows and customer demand is unmatched. With Traxys as a partner, we are closing supply chain gaps and building a fully integrated rare earth platform that delivers security, transparency, and reliability to global customers.”
For more information, query for previous coverage in Magnetics Magazine and see www.phoenixtailings.com.
