NORTH CAROLINA — A group of Democratic lawmakers sent a letter to the White House demanding answers about a Pentagon loan to Vulcan Elements, a North Carolina-based rare-earth magnet manufacturer. The letter was addressed to White House Chief of Staff Susie Wiles and co-authored by U.S. Senators Elizabeth Warren, Richard Blumenthal, and Mazie Hirono, and U.S. Representatives Jason Crow and Mike Levin.

The Pentagon announced the $620 million loan to Vulcan Elements. White House senior counselor Peter Navarro requested that the Defense Department approve the loan for the company. Pentagon staff involved in the deal said they were instructed to expedite the loan process following a directive from the White House. A Pentagon official involved in the deal stated, "The call came from the White House: We have to get this done."

A venture capital firm associated with Donald Trump Jr., 1789 Capital, acquired an equity stake in Vulcan Elements approximately three months before the loan announcement. Estimates indicate Vulcan Elements' valuation increased tenfold following the loan. A spokesperson for 1789 Capital stated the firm played no role in securing the loan and learned of the transaction after it was public.

The lawmakers' letter asked whether President Donald Trump was aware of or involved in the loan transaction. It also requested information regarding Peter Navarro's communications with Pentagon officials about Vulcan Elements. Navarro dedicated a book to Donald Trump Jr. and hosted him on a streaming platform one week before the loan was announced. Donald Trump Jr. also visited Navarro during his incarceration for defying a congressional subpoena related to the January 6, 2021, Capitol investigation.

Pentagon officials said Vulcan Elements was the only company among dozens considered for funding to receive a loan request initiated by a senior White House official. The loan's stated purpose is to reduce U.S. dependence on China for critical minerals. A Pentagon spokesperson stated that political connections and outside affiliations do not influence departmental funding decisions.

The lawmakers wrote that the reporting revealed: "The reporting reveals a staggering level of corruption and influence peddling that superseded this process, enriching the President's son at the expense of U.S. national security and taxpayer dollars." They added, "The American public and service members that are in harm's way expect that the DoD contracting process is fair, unbiased, and competitive to ensure that only the best companies, providing only the best products, receive taxpayer dollars."