Rare earths are the magnets inside almost everything: EVs, wind turbines, fighter jets, your phone. China refines 19 of the world’s 20 strategic minerals, with an average 70% market share. That makes it one of the West’s biggest strategic weak points.
The company
Atomic Tessellator is an Auckland startup running a simulation first “digital laboratory”. It combines quantum physics and AI to design brand new materials from scratch, aiming to replace rare earths entirely.
The first result
The company says its first result is a magnet called Vireon, built from elements mined in Australia, that outperforms the rare earth versions. They claim their approach compresses materials discovery from years to weeks.
The raise
A seed round of about US$8.1M (around NZ$13M) at a valuation reported at roughly NZ$50M, backed by Crane Venture Partners, In-Q-Tel (the CIA’s venture arm), plus Icehouse, Outset and GD1.
My read
A tiny Kiwi lab designing the materials defence and aerospace actually run on. If the Vireon claims hold up outside their own testing, this is a genuinely strategic company, and the investor list suggests serious people think they might.