A second defense contract awarded to a company with ties to Donald Trump Jr. has sparked ethical concerns regarding defense procurement processes during the Trump administration. Vulcan Elements, a small startup specializing in rare-earth magnets for military equipment, has secured a $620 million Pentagon loan as part of a $1.4 billion initiative to boost magnet production for defense applications.
The Financial Times reports that Vulcan Elements, employing just 30 staff, received funding through 1789 Capital—a venture firm established by pro-Trump donors in 2023 that brought Trump Jr. aboard as partner last year. This development follows a previous contract awarded to Unusual Machines, a drone manufacturer in which Trump Jr. holds a $4 million stake, that secured a U.S. Army contract to produce 3,500 drone motors with plans for an additional 20,000 components next year.
According to analysis, at least four companies within 1789 Capital’s portfolio have obtained contracts totaling over $735 million from the Trump administration this year. Both Vulcan CEO John Maslin and Unusual Machines CEO Allan Evans have stated that Trump Jr. played no direct role in securing these government contracts.
However, ethical questions have emerged following Trump Jr.’s September podcast comments about screening Pentagon candidates based on their willingness to increase drone expenditures. Kedric Payne, general counsel at the Campaign Legal Center, noted that these transactions create apparent conflicts of interest, stating that presidents should avoid even the appearance of using office to benefit family members financially.
The pattern of contracts awarded to companies connected to the president’s son has raised concerns about procurement transparency and the potential blurring of lines between political connections and defense contracting decisions.