SECURE INVESTMENT: DoD becomes largest shareholder of company possessing America’s sole rare Earth mine

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The Pentagon will buy $400 million in preferred stock from MP Materials, operator of the only U.S. rare earths mine in Mountain Pass, California.

The move supports the Trump administration’s push to reduce reliance on China for these critical minerals, key to military supply chains. Rare earths are essential for U.S. weapons systems, including drones, submarines, and F-35 jets. Soon after taking office, Trump signed an executive order to boost domestic mining, noting that 70% of the U.S.’s rare earth imports come from China. He pledged to make the U.S. a leading producer and processor of these critical minerals.

“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication.”

China produces about 60% of global rare earths and refines nearly 90%, key for electronics, EVs, and renewable tech. After Trump imposed tariffs, China halted shipments of rare earths to the U.S., but a new agreement reached last month will resume imports.

MP Materials’ deal with the Pentagon includes building its second U.S. magnet facility—the “10X Facility”—to serve defense and commercial needs, with completion expected in 2028. The 10-year agreement sets a price floor to shield the company from unfair market forces. MP Materials shares surged nearly 50% Thursday, reaching $44.

REPORT: China Cuts Off Rare Earth Mineral Exports to U.S. in Trade War with Trump

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