The U.S. Department of Defense entered a significant $400 million deal with MP Materials, making it the largest stakeholder. This investment aims to decrease reliance on foreign rare earth elements, vital for military systems. MP Materials operates the only U.S. rare earth mine, located in California. The funds will facilitate the construction of a second domestic magnet manufacturing facility, boosting production capacity to 10,000 metric tons. The agreement includes terms for the government to purchase materials at a minimum price for the next decade.
The DOD agreed to buy $400 million of MP Materials newly created preferred shares stock, making the U.S. military the company's largest stakeholder.
MP Materials owns the only operational rare earth mine in the U.S., critical for reducing foreign dependence on rare earths used in military systems.
The investment will fund the construction of the 10X Facility, increasing U.S. rare earth magnet manufacturing capacity to 10,000 metric tons.
The U.S. government has a 10-year agreement to buy MP Materials for a minimum price of $110 per kg for its neodymium materials.
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