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In October, Popular Information reported that the Pentagon awarded a contract to Unusual Machines, an obscure drone company that President Trump’s son, Donald Trump Jr., joined as an advisor in November 2024, despite having no notable experience with drones or military contracting.
The contract was for the manufacturing of 3,500 drone motors, and the Army also “indicated it planned to order an additional 20,000 components” from Unusual Machines next year. Trump Jr. was given 200,000 shares of the company’s stock in 2024, which are now worth millions.
Now, another small startup funded by 1789 Capital, a venture capital firm where Trump Jr. is a partner, will receive a $620 million loan from the Defense Department, the Financial Times reported. Vulcan Elements, which currently has around 30 employees, produces rare-earth magnets, which can be used in “drones, radar systems and other military applications.” The contract was awarded just three months after 1789 invested in Vulcan.
The loan is part of a larger $1.4 billion deal announced last month that also involves another company, ReElement Technologies. It also includes $50 million from the Commerce Department and $550 million from private investors. In exchange, the “Department of Commerce will receive $50 million of equity in Vulcan Elements.” The Department of Defense will receive warrants for Vulcan Elements — an option to buy a stake in the future — according to a press release.
Both Vulcan CEO John Maslin and Unusual Machines CEO Allan Evans said that Trump Jr. played no role in securing the government contracts. According to the Financial Times, “[a]t least four of 1789’s portfolio companies have won contracts from the Trump administration this year, amounting to more than $735 million.”
Trump Jr. “helped screen candidates for top jobs at the Pentagon on behalf of his father after the election.” In September, Trump Jr. said on his podcast that he looked for candidates who wanted to spend more on drones, alleging that the military is “better served with a drone that costs… a tiny fraction of that of a plane.” During the nomination process, Trump Jr. was also an outspoken defender of Defense Secretary Pete Hegseth, who later issued several directives that enabled the Pentagon to increase spending on drones.
https://popular.info/p/update-trump-jr-backed-startup-receives
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UPDATE: Trump Jr.-backed startup receives $620 million Pentagon loan