MP Materials’ stock rocketed over 50% on Thursday after sealing a huge deal with the Pentagon. The US Defense Department will become the company’s biggest owner by buying $400 million of special stock, grabbing a 15% stake.
This cash will help MP Materials build a new magnet factory called the “10X Facility” and upgrade its California mine. The government also promised to buy all magnets from the new plant for 10 years and set a minimum price for key materials.
Big banks JPMorgan and Goldman Sachs are chipping in $1 billion, too. This mega partnership aims to make America less reliant on other countries for super-important minerals.
Why rare earths matter: F-35 jets, phones, and China’s control
Rare earth metals are hidden stars in gadgets and weapons. They make magnets inside electric cars, cell phones, drones, and even F-35 fighter jets.
Right now, the U.S. gets nearly 70% of these minerals from China, which tightened exports recently, causing a scary 75% drop in shipments last month.
As of now, MP Materials runs America’s only major rare earth mine at Mountain Pass, California.
By teaming up with the Pentagon, they’ll boost U.S. production and create a full supply chain from digging ore to making magnets. CEO James Litinsky praised the Trump administration for “accelerating American supply chain independence”.
New factory to slash foreign reliance by 2028
The “10X Facility”, MP’s second magnet plant, will start by 2028 at a location still secret. Along with their Texas plant being built now, it’ll help America make its own magnets instead of importing them.
MP also gets a $150 million loan to upgrade its Mountain Pass mine, adding heavy rare earth processing. China currently controls 96% of global magnet output, so this move is a big counter-punch.
As one analyst noted, MP is “in the driver’s seat” as the only major U.S. rare earth producer. The stock surge adds to a 92% gain already this year, showing investor excitement.
Green tech and weapons to benefit from U.S.-made magnets
This isn’t just about defense, it’s about clean energy too. Those powerful magnets go into wind turbines and electric vehicles, helping green goals.
With China using export permits as a trade weapon, the U.S. is fighting back with cash and contracts.
The deal follows President Trump’s March order to boost critical minerals using emergency powers.
Experts say rare earth prices are currently too low for new mines without government help, making this partnership essential.
If successful, MP Materials could turn American rocks into high-tech jobs and security, powering everything from iPhones to submarines
