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Defense Department buys into rare-earths mining company
MP Materials Seals Big Rare-Earths Deal with Defense Department to Break China's Grip
By Katha Kalia, Eric Onstad, and Ernest Scheyder
Reuters
Thursday, July 10, 2025
MP Materials today unveiled a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets and help loosen China's grip on the materials used to build weapons, electric vehicles and many electronics.
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Under the deal, which sent MP's shares up nearly 50%, the U.S. Department of Defense will become the largest shareholder in Las Vegas-based MP, making it Washington's most high-profile investment to date in the critical minerals sector.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. China halted exports in March as part of a trade spat with U.S. President Donald Trump that showed some signs of easing late last month, even as the broader tensions underscored the need for greater U.S. output.
MP operates the only U.S. rare earths mine and is working to boost domestic processing and magnet production.
The DoD will guarantee a floor price of $110 per kilogram for the two most-popular rare earths, a price nearly twice the current Chinese market level, which has languished at low levels and has long deterred investment. MP received an average of $52 per kilogram for those same rare earths in the second quarter. ...
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