Pentagon Becomes Largest Shareholder in U.S. Rare Earth Mine

The Department of Defense has agreed to purchase $400 million of preferred stock in MP Materials, making it the largest shareholder with a 15% stake in the only operational rare earth mine in the U.S., located at Mountain Pass, California. This investment is part of a broader effort to reduce American dependence on China for rare earth elements critical to military technologies such as the F-35 fighter jet and Virginia-class submarines. MP Materials plans to build a second magnet manufacturing facility, the 10X Facility, with $1 billion in financing from JPMorgan Chase and Goldman Sachs, expected to be operational by 2028. The Pentagon has committed to purchasing 100% of the magnets produced at this new facility for a decade, supporting supply chain independence and national security. Additionally, the DoD will provide a $150 million loan to expand rare earth separation capabilities at the Mountain Pass site. This public-private partnership under President Trump’s administration is seen as a strategic move to secure the full rare earth supply chain within the United States and mitigate risks associated with reliance on China.