The rare earth mining company MP Materials on Thursday announced a massive deal with the Pentagon, that will make the Defense Department (DoD) the company’s largest stakeholder.
The Pentagon agreed to a massive investment package with MP Materials that will help it construct its second domestic magnet manufacturing facility. The location of the second facility has not been disclosed so far. The package includes shares in the company that are estimated at $400 million.
“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” James Litinsky, Founder, Chairman, and CEO of MP Materials said. “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.”
Rare earth materials are used in magnets, which are beneficial to the DoD because it is used in a range of military weapons systems including the F-35 warplane, drones and submarines, CNBC reported.
MP Materials currently owns the only operational rare earth mine in the U.S., which operates in Mountain Pass, California. The package will help the company expand its rare earth processing capacity.Â
The move comes as the Trump administration looks to ease U.S. rare earth mineral dependence on foreign countries. The U.S. is reliant on other countries for the bulk of its rare earth minerals, and the majority of the supplies come from China.
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.Â
