Rare earth minerals are essential for technologies like military platforms and vehicles, prompting U.S. concerns over supply after China's export limits. China supplied about 70% of U.S. rare earth imports in 2023. In response, the U.S. Defense Department acquired a 15% stake in MP Materials, which produces Neodymium-Praseodymium oxide used in high-strength magnets. MP is enhancing production capabilities with a new facility, 10X, and has secured a contract with DOD to purchase magnets for a decade, ensuring resource availability amid potential market fluctuations due to China.
The U.S. Defense Department has agreed to acquire a 15% stake in MP Materials, becoming the company's largest shareholder to secure rare earth minerals crucial for military and technology.
MP Materials, the only U.S. operational hub for rare earths, will use investment to build a second manufacturing plant for high-strength magnets, addressing supply chain concerns.
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