Hertha Metals, a startup planning to produce high-purity iron for U.S.-made rare-earth magnets-essential to F-35 jet fighters and missile-guidance systems-said it closed a $133.65 million Series A round that includes a $65 million equity investment from the U.S. government.

The financing comes as the Trump administration is trying to loosen China's stranglehold on minerals vital to U.S. defense and advanced technologies, the WSJ's Rhiannon Hoyle writes.

The U.S. investment was made via the Defense Department's Industrial Base Analysis and Sustainment program in partnership with its Economic Defense Unit, said Hertha Metals CEO and founder Laureen Meroueh. A Pentagon official said the department doesn't comment on speculation about potential transactions.

Conroe, Texas-based Hertha will use the money to fund the construction and early operations of a roughly $100 million plant, called Chalyx. The company aims to produce 10,000 metric tons of high-purity iron and steel annually at the facility, mostly to supply U.S. magnet makers.

-- The Navy selected Boeing for a contract worth more than $20 billion to build its next-generation F/A-XX jet fighter. (WSJ)

Quotable

"It was a colossal headache. I hope I don't have to go through it again. It was not profitable for our company in any shape or form."Jonathan Silva, co-owner and CEO of WS Game Company, on producing the company's first U.S.-made game

Automakers

Fewer new car models are hitting the market than at any time in recent history, the Journal's Sharon Terlep writes. Automakers are expected to redesign 9% of their lineup on average across the 2026 through 2028 model years-well below the 20-year average of 14%, according to a report by veteran automotive analyst John Murphy.

That figure, which factors in sales volumes, would be even lower if not for General Motors' redesign of its top-selling pickup trucks. The dearth of new models is a direct hangover from the industry's shift to EVs and its abrupt pullback. The billions bet on EVs diverted time and money from the types of models that buyers crave today, from hybrids to V8-powered trucks.

New entries are sparser now than in the years following the Covid pandemic, when the auto industry ground to a halt, and in the aftermath of the auto industry crisis of the 2007-09 recession. It will be at least another year or two before car companies start churning out new models at their usual pace, analysts say.

Maritime Security

Houthi militants have expanded their footprint along Yemen's Red Sea coast and asserted control over the Bab al-Mandeb Strait, a crucial corridor for global energy.

While the Houthis lack a traditional navy, they operate a disruptive, asymmetric maritime force along Yemen's coastline, relying on Iranian-designed land-based missiles, explosive drones, sea mines and armed fast-attack boats, as well as drone boats, to assert control. The Houthis' arsenal draws heavily on Iranian technology and components. Chinese companies are supplying the group with goods that can be used for both military and civilian purposes.

The WSJ's Andrew Barnett, Daniel Kiss and Benoit Faucon show how the Houthis have enlarged their sphere of influence to become key players in the wider war between the U.S. and Iran-and the weapons and tactics they have used to do so.

Number of the Day

$6.382

Average on-highway diesel price a gallon in the week ended Sept. 28, down nearly 15 cents from the week before but still almost $2.63 higher than a year earlier, according to the U.S. Energy Information Administration.

In Other News

-- The pace of hirings, firings, quits and vacancies budged little last month, according to the Labor Department's survey of job openings and labor turnover. (WSJ)

-- The Conference Board's consumer confidence index fell by 6.7 points to 81.9 in September, missing the 89 reading expected by economists. (WSJ)

-- The S&P Cotality Case-Shiller National Home Price Index rose 1.9% in the 12 months through July, up from a 1.6% increase in June. (WSJ)

-- China's official manufacturing purchasing managers index rose to 50.1 in September, ending a two-month streak of contraction. (WSJ)

-- Canada's GDP was unchanged in July from June, snapping three straight months of expansion that included upwardly revised growth of 0.4% in June, with advance data indicating output increased 0.2% in August. (WSJ)

-- AT&T signed a $3 billion deal with Corning, which will supply the mobile carrier with the fiber and cable to expand its network and meet growing demand for data. (WSJ)

-- Shein Global's quarterly profit fell and revenue increased anemically as the fast-fashion retailer struggled with tariffs and mounting logistics costs. (WSJ)

-- Tesla delayed the launch of its Roadster sports car reboot by two weeks to Oct. 15. (WSJ)

-- Florida passenger railroad Brightline won court approval to tap $258 million in bankruptcy financing despite an objection from an investment fund. (WSJ)

-- Shell plans to double production capacity at its LNG Canada facility in British Columbia to 28 million metric tons a year. (WSJ)

-- A group of longshore unions from Canada, the U.S., U.K., Australia and New Zealand said DP World's rollout of automation technology at its terminals threatens jobs. (Journal of Commerce)

-- Small and midsize businesses are turning over inventory about four times a year, but 24% of surveyed firms say over 10% of inventory was "dead stock" that had stopped selling, according to a Netstock report. (SupplyChain24/7)

-- The chair of the Senate Intelligence Committee asked Defense Secretary Pete Hegseth to review the Pentagon's supply chain after F-35 warplane parts ended up in Chinese government hands. (Bloomberg)

-- United Parcel Service said it reached a deal to provide no-box, no-label returns for the TikTok Shop network of U.S. sellers (Reuters)

-- Kodiak AI plans to launch an autonomous long-haul service without human supervision for IKEA in Texas by the end of the year. (TruckingDive)

-- The first of two giant machines that will bore train tunnels under the Hudson River was switched on Monday in North Bergen, N.J. (Gothamist)

-- Cattle producers from Texas, Kansas and Oklahoma warned that Immigration and Customs Enforcement operations threaten the U.S. beef supply chain. (SupplyChainBrain)

-- New California laws aiming to hold cold-storage warehouse operators accountable for fires and other disasters will raise costs along food and pharmaceutical supply chains, an industry group warned. (DC Velocity)

WSJ's Tech: California event returns to Napa Valley Nov. 3-4. We will explore the latest tech industry news with Sequoia Capital partner Pat Grady, Zoox CEO Aicha Evans, Take-Two Interactive CEO Strauss Zelnick and more. If you are interested in attending, request an invitation.

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

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This article is a text version of a Wall Street Journal newsletter published earlier today.