The U.S. Department of Defense is set to become the largest shareholder in MP Materials, operator of the only rare earth mine currently active in the United States.
The U.S. Department of Defense is set to become the largest shareholder in MP Materials, the operator of the only currently active rare earth mine in the United States. As MP announced this Thursday, the Pentagon plans to invest several billion dollars as part of the partnership. With this support, a new magnet manufacturing facility is to be built by 2028 to supply both civilian and military industries. The exact location is yet to be determined. The new facility will complement MP’s Mountain Pass mine in California and its magnet plant in Texas.
In addition, the Department of Defense will commit to a ten-year off-take agreement for magnets, as well as a decade-long price guarantee for the raw material neodymium-praseodymium (NdPr).
With the Pentagon’s backing, MP also plans to expand its Mountain Pass operations to include the separation of heavy rare earth elements. These particularly critical materials are currently produced almost exclusively in China. In April, the Chinese government, as the world’s leading producer, imposed new restrictions on nearly all exports of heavy rare earths—measures that have had a tangible impact on global supply security.
Almost a year ago, rumors surfaced about a potential merger between MP Materials and Australian mining company Lynas, the most important rare earth producer outside of China. Lynas is currently building a rare earth separation plant in the U.S. state of Texas, also with support from the Pentagon.
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