DoD becomes top shareholder in MP Materials as part of $400 million initiative to strengthen critical mineral security.
The U.S. Department of Defense has invested $400 million into MP Materials, acquiring a 15 percent stake in the company, which operates the only active rare earth mine in the country at Mountain Pass, California. This move is part of a broader national effort to reduce reliance on China, which currently supplies about 70 percent of U.S. rare earth imports.
The investment, which includes stock warrants and a guaranteed purchase price for neodymium-praseodymium oxide, positions the U.S. government as MP’s largest shareholder. MP will also receive a $150 million loan to expand heavy rare earth processing, supporting critical industries such as defense, electric vehicles, and electronics.
In a separate agreement, Apple Inc. has pledged $500 million toward purchasing rare earth materials from MP Materials and will partner with the company to build a neodymium magnet plant in Texas, expected to begin shipments by 2027. This initiative, part of Apple’s broader domestic investment plan, includes a rare earth recycling facility at Mountain Pass and plans to create U.S. jobs in manufacturing and research.
Despite recent signs of easing in U.S.–China trade tensions, Beijing’s export restrictions on rare earths have disrupted global supply chains, prompting governments and industries to diversify sources. The Pentagon’s investment highlights the strategic importance of securing a stable and domestic supply of these critical minerals.
As the Lord Leads, Pray with Us…
- For Deputy Secretary Feinberg as he invests in the critical mineral suppy chain to increase national security and defense readiness.
- For U.S. defense officials as they work to reduce dependence on China’s supply of rare earth minerals.
Sources: Defense Forces, Reuters
