US EditionThe Defense Dept. Just Invested Billions in MP Materials. Should You Buy Too?
AUSTRALIA, JUL 11 – The U.S. Department of Defense will hold a 15% stake in MP Materials as the deal aims to reduce reliance on China amid export controls, boosting Australian rare earth stocks by up to 27%.
- On Friday, Australian rare earth stocks surged after the US DoD-MP Materials partnership was announced, with MP shares soaring over 50%.
- MP Materials’ partnership with the U.S. Department of Defense involves a multibillion-dollar deal to build the 10X Facility, aiming to reduce reliance on China amid export controls.
- Lynas shares rose 17%, Iluka jumped 27%, and MP Materials stock surged over 50%, signaling strong U.S. and Australian market confidence amid the DoD partnership, Jefferies noted.
- Australian rare earth stocks surged after the US deal, with Lynas up 17% and Iluka 27%, boosting Australian miners and validating strategic importance, while government incentives may further influence stocks.
- The 10X Facility is scheduled to begin commissioning in 2028, aiming to strengthen supply chains and industrial resilience amid geopolitical tensions.
19 Articles
19 Articles
Washington, Jul 11 (EFE).- The U.S. Department of Defense's takeover of the mining company specializing in rare earth MP Materials, with a 15% share, represents a decisive step by the Donald Trump Administration to reduce China's dominance of the issue, according to Energy Secretary Chris Wright. “China has a massive influence. They control the supply chain of rare earth elements. (...) We need to have that control ourselves. President Trump set…
The Defense Dept. Just Invested Billions in MP Materials. Should You Buy Too?
Key Points in This Article: The Defense Department just bought a 15% stake in MP Materials (MP), the only U.S. rare earth miner, driving a 50% surge in its stock price. Unlike temporary government interventions in companies like GM and AIG, the DoD’s ongoing ownership in MP Materials raises concerns about market distortions and prioritizing policy over profits. Investors face a dilemma: MP’s strategic importance and growth potential are compe…
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