Trump Urges Defense Industry to ‘Do Magnets’ After Reporting on Pentagon Loan
The reporting has prompted Congressional letters and ethics questions about whether White House intervention steered Pentagon financing.
Overview
- President Donald Trump told defense contractors “do magnets” during remarks at the Pennsylvania Defense & Innovation Summit on Wednesday, urging companies to expand domestic magnet production without offering technical details.
- A late‑May ProPublica report said White House senior counselor Peter Navarro requested that the Pentagon approve a $620 million loan to Vulcan Elements, a rare‑earth magnet startup.
- ProPublica reported that 1789 Capital, a firm linked to Donald Trump Jr., invested in Vulcan roughly three months before the Pentagon announced the loan, creating a timeline that drew scrutiny.
- The White House, the Pentagon and Donald Trump Jr. have denied any improper role by the president’s son and Navarro dismissed the reporting, while defense officials told reporters they were asked to move unusually quickly on the loan.
- Rare‑earth magnets are key parts of many weapons and sensors, so this episode could increase oversight of Pentagon loan approvals and prompt closer scrutiny of how the administration speeds defense supply‑chain projects.