The US Department of Defense has agreed to invest $400 million in MP Materials, a rare earth miner, by purchasing preferred stock worth $400 million. This investment will make the Pentagon the largest shareholder in the company.
MP Materials owns the only operational rare earth mine in the US at Mountain Pass, California, which is used in various military systems, including F-35 warplanes, drones, and submarines. The mining company plans to use the investment to expand its processing capacity and magnet production.
The investment will also support the construction of a second magnet manufacturing facility in the US, with the Pentagon guaranteeing a minimum price for neodymium-praseodymium oxide, a rare earth compound used in magnets. This deal is expected to bring significant benefits to the company and the US economy.
“We remain a thriving public company,” said MP Materials CEO James Litinsky, emphasizing that the investment will accelerate the buildout of an end-to-end rare earth magnet supply chain in the US. The company aims to reduce its dependence on foreign countries for rare earths and promote free markets.
Source: https://www.cnbc.com/2025/07/10/pentagon-to-become-largest-shareholder-in-rare-earth-magnet-maker-mp-materials.html