Claim:
A startup associated with Donald Trump Jr.’s investment enterprise has secured a $620 million loan from the U.S. Department of Defense.
Rating:
In December 2025, rumors proliferated online concerning a startup financially backed by Donald Trump Jr.’s venture firm that allegedly obtained a $620 million loan from the U.S. Department of Defense (DOD).
Disseminated through social media platforms like X and Facebook, this information ignited a wave of discourse. Some commentators denounced the Trump administration as “the most corrupt administration in the history of America,” citing presumptive conflicts of interest surrounding such a transaction.
Donald Trump Jr’s VC Firm is involved with company that received $620 million government contract from Trump administration. This is the most corrupt administration in the history of America. pic.twitter.com/V26KciIUEn
The assertion that a company linked to Trump Jr.’s investment firm, 1789 Capital, was awarded a $620 million loan from the DOD holds true.
Vulcan Elements, a startup that claims to be “dedicated to enhancing U.S. and allied security through the production of rare earth magnets vital for economic and national protection,” publicized this information on its website on November 3, 2025.
Rare earth magnets generate robust magnetic fields and are ubiquitous in various products, from computers and electric vehicles to power tools and critical defense systems like guided missiles and aerospace technologies.
“Vulcan Elements’ expansion to a production capacity of 10,000 tonnes will be funded by a $620 million Direct Loan from the Department of War’s Office of Strategic Capital (OSC),” the company stated, using an alternative term for the DOD favored by the Trump administration.
Furthermore, the firm indicated it would secure an additional “$50 million in federal incentives from the Department of Commerce through the CHIPS and Science Act, alongside $550 million in private financing.”
A statement issued by the DOD on November 21, 2025, corroborated this news, detailing that, “The OSC commitment encompasses two distinct loans—one to Vulcan for $620 million and another to ReElement for $80 million.”
ReElement specializes in “purification and separation technology” for refining rare earth elements. The DOD added that these loans would “directly bolster the production capabilities for advanced rare earth element separation, metallization, and magnet manufacturing in the United States.”
Emil Michael, identified in the DOD statement as the “Under Secretary of War for Research and Engineering,” remarked that these loans would facilitate the establishment of a supply chain instrumental for sectors including “chip manufacturing, drones, electric vehicles, fighter jets, industrial motors, nuclear submarines, and satellites.”
On November 4, 2025, Christopher Buskirk, founding partner and chief investment officer of 1789 Capital, tweeted on X, stating, “We backed @VulcanElements & @_JohnMaslin with an investment from @1789Capital in their last round & are doing so again in the current round. Critical elements & battery manufacturing are essential to American security & prosperity.”
Donald Trump Jr. serves as a partner at 1789 Capital, according to the firm’s website. His involvement has prompted extensive speculation that his position may have influenced the DOD’s loan decision, particularly given his father’s presidency and potential financial advantages.
A Pentagon official, however, clarified to Snopes via email, “Mr. Donald Trump Jr. was not involved in any aspect of the conditional loan commitment discussions between OSC and Vulcan.”
Snopes continues to investigate potential legal or ethical quandaries associated with this matter and will provide updates as information becomes available.
Additionally, attempts to solicit comments from 1789 Capital and Vulcan Elements are underway, with promises to update if responses are received.
Source link: Snopes.com.
