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UNITED STATES, JUL 10 – The Pentagon's investment aims to secure U.S. rare earth supplies amid instability in Chinese exports, boosting MP Materials' stock by 50%, analysts reported.
- Shares of MP Materials, a rare earths mining company based in Las Vegas, jumped more than 50% on Thursday following the announcement of a multibillion-dollar deal involving a significant investment and long-term purchase agreement from the U.S. defense sector.
- The deal stems from the U.S. aim to reduce dependence on China, which controls about 90% of rare earth magnet manufacturing and supplies nearly 70% of U.S. imports.
- Under the agreement, the Department of Defense will acquire a roughly 15% equity stake in MP Materials, commit to buying all magnets produced at a new facility for a decade, and contribute $400 million in investment alongside a $150 million loan.
- CEO James Litinsky said the deal is a public-private partnership, not a nationalization, and pledged that taxpayers are expected to profit significantly from their investment.
- This partnership signals increased U.S. efforts to secure domestic rare earth production, with MP Materials slated to open a second magnet manufacturing facility by 2028 funded also by $1 billion from JPMorgan and Goldman Sachs.
17 Articles
17 Articles
Pentagon takes ownership stake in only US rare earth mine
Rare earth metals are vital to electronics, and most of them are mined in China There is only one active rare earth mine in the whole of the United States. As of Friday, the Department of Defense has become the largest shareholder in the company that owns and operates it. …
Pentagon to Take $400 Million Stake in Rare Earth Miner Outside Vegas
The rare earths sector’s magnetism has been undeniable lately. Now, the US Department of Defense is set to become the largest shareholder in Las Vegas-based MP Materials, the owner and operator of the only working rare earth mine and processing facility in the country. The company announced on Thursday that, in addition to US taxpayers footing a $400 million stake and a $150 million loan, the Defense Department has agreed to purchase all of the…
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