Pentagon Allocates $620 Million to Company Backed by Trump’s Son Under White House Pressure

The White House intervened in the Pentagon’s process of granting a $620 million loan to the company Vulcan Elements. Particular attention has been drawn to this deal because, a few months before it was signed, Donald Trump Jr.’s venture capital firm acquired a stake in the startup.

ProPublica reported on this, based on interviews with officials and an analysis of Pentagon documents.

According to journalists, the funding request for the North Carolina-based firm came from Peter Navarro, a White House trade adviser and a close friend of the president’s son. Among dozens of companies being considered by the military department at the time, Vulcan Elements was the only one whose application was lobbied for by a senior official from the president’s inner circle.

After receiving the request, Pentagon leadership instructed staff to speed up the review process. Employees of the Office of Strategic Capital worked under tight deadlines and without sleep to process the multimillion-dollar loan in just a few weeks instead of the standard months required for thorough review.

Representatives of Vulcan Elements, the White House, and Donald Trump Jr. himself deny any allegations of nepotism or political favoritism. A spokesperson for the president’s son stated that he does not discuss his investment projects with government officials and was not aware of how the financing deal was prepared.

However, the allocation of funds became a huge success for the young startup, which launched its first venture only in March 2025 with less than $10 million in capital. After the announcement of government support, the market value of the company, which produces rare-earth magnets, increased tenfold—reaching approximately $2 billion.

The Pentagon’s Office of Strategic Capital program, initially created to reduce the U.S.’s dependence on China for critical minerals, underwent significant changes under the new administration. The military department expanded lending limits from $1 billion to $200 billion and brought in former Wall Street executives to manage it.

Instead of an open, though bureaucratic, application process, the new office leadership began actively seeking companies in the market, often relying on personal connections. In addition to Vulcan Elements, several other companies received similar conditional financing, including the metallurgical firm KoreaZinc and the mining company MP Materials.

Democratic senators have already demanded that the Pentagon provide a detailed report on the selection of fund recipients, citing the risk of taxpayer money being misused.

Control over rare-earth supply chains, such as samarium, is critically important for the U.S. defense-industrial complex. These materials are used in the production of semiconductors, drones, satellites, and are essential for F-35 fighter jet engines and Tomahawk missile guidance systems.

In addition to the deal with Vulcan Elements, other entities connected to the president’s family are also under the Pentagon’s scrutiny.

According to sources, the Pentagon is considering providing financial assistance to the Florida-based drone parts manufacturer Unusual Machines, where Trump Jr. serves as a member of the advisory board and is a shareholder.