Topline
The Defense Department on Thursday became the largest shareholder in MP Materials, which owns the only rare earth mine in the U.S., amid a surge in demand for rare earths mined in the U.S. as China has curbed its rare earth exports amid a trade war with the U.S.
A dump truck hauls earth materials containing Bastnasite from the open pit at the Mountain Pass Mine … More
Key Facts
Shares of MP Materials’ stock was up 52% as markets opened Thursday following the news that the Pentagon would make investments worth about 15% stake in the company.
The Department of Defense will buy $400 million in MP Materials’ preferred stock, along with a warrant to purchase common stock—investments the mining company will use to build a new rare earth magnet plant, in addition to its facility in California’s Mojave Desert.
The investment comes as MP Materials has seen a sharp increase in domestic demand after China restricted exports of rare earth minerals crucial to operations in industries from defense to auto.
Crucial Quote
“The sense of urgency, I’ve never seen anything like it,” MP Materials CEO and founder Jim Litinsky told Forbes in April after China started limiting exports. “It’s pretty wild and exciting—and daunting.”
Further Reading
The Only U.S. Rare Earth Mine May Win Big From Trump’s China Tariffs
Source: https://www.forbes.com/sites/saradorn/2025/07/10/us-becomes-largest-shareholder-in-mp-materials-rare-earth-miner-to-counter-china/