Pentagon to become rare earth mining company's largest stockholder
The U.S. Department of Defense (DOD) is investing in domestic rare earth mineral production to reduce reliance on China, which supplied about 70% of U.S. imports in 2023 and recently restricted exports amid trade tensions. To secure access to these critical materials—vital for military systems and technologies—the DOD is acquiring a 15% stake in MP Materials, the only U.S.-based rare earth miner. MP focuses on Neodymium-Praseodymium oxide, essential for high-strength magnets. The deal includes building a second facility, “10X,” to manufacture magnets by 2028, with the DOD committing to buy all its output for 10 years at a fixed price. This move aims to create a robust, vertically integrated domestic supply chain and mitigate risks from potential market manipulation by China.