Phoenix Tailings Secures $40.2M in Series B-3 Funding Led by Olive Tree Capital

Why It Matters

The infusion of equity and venture debt strengthens U.S. rare‑earth independence and accelerates Phoenix Tailings’ ability to meet growing demand for clean‑technology metals.

Key Takeaways

• Raised $40.2M in Series B-3 funding.
• Equity led by Olive Tree Capital, $30.2M.
• $10M venture debt secured from Nomura.
• Strategic partners added: Traxys, Eni Next, Geodesic.
• Capital earmarked for expansion and development.

Pulse Analysis

The global push for clean energy and defense applications has intensified demand for rare earth elements, yet most supply remains concentrated in China. Phoenix Tailings addresses this strategic gap by converting mining tailings into high‑purity rare earth metals at facilities in Massachusetts and New Hampshire, offering a domestic, circular source that reduces environmental impact and geopolitical risk. By building a full‑stack supply chain—from waste material to finished alloys—the company positions itself as a critical player in the U.S. effort to secure critical minerals.

The $40.2 million Series B‑3 raise blends traditional equity with venture debt, a financing structure increasingly favored by capital‑intensive clean‑tech firms. Olive Tree Capital’s lead equity commitment signals confidence in Phoenix Tailings’ growth trajectory, while Nomura’s debt component provides non‑dilutive capital to fund capital‑intensive plant upgrades. The addition of strategic investors such as Traxys, a global metal trader, and Eni Next, the renewable arm of an energy major, brings industry expertise, off‑take potential, and market access that can accelerate commercial rollout.

With total Series B funding now exceeding $115 million, Phoenix Tailings is poised to expand capacity, pursue new alloy formulations, and deepen relationships with automotive, wind‑turbine and defense customers. The capital injection also aligns with U.S. policy incentives aimed at reshoring critical mineral production, potentially unlocking further tax credits and grant opportunities. As competitors scramble to secure similar financing, Phoenix Tailings’ blended funding and strategic partnerships may set a benchmark for scaling rare‑earth ventures in the United States.

Deal Summary

Phoenix Tailings, a rare‑earth metals producer, raised $40.2 million in a Series B‑3 amplification round. The financing included $30.2 million of equity led by Olive Tree Capital and $10 million of venture debt from Nomura, with strategic partners Traxys, Eni Next and Geodesic Alliance Fund joining the round. The capital will fund expansion of operations and development efforts.