#Pentagon Becomes Largest Shareholder Of #US Rare Earth Miner
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.
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 Mountain Pass facility in California’s Mojave Desert.
A location for the new “10X Facility” geared toward defense and commercial customers and slated to begin production in 2028 has yet to be decided.
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.
Why #Greenland? not #Mountainpass, #California for #RareEarth elements?
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