MP Materials ‘trace’ rocket more than 50% on Thursday after sealing a huge agreement with the Pentagon. The US Defense Ministry will become the largest owner of the company by buying $ 400 million special shares and grabbing a 15% stake.
This cash will help MP Materials to build a new magnetic factory called “10x devices” 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 also break down to $ 1 billion. The aim of this mega partnership is that America is less reliable to other countries for super important minerals.
Why rare soils affairs: F-35 nozzles, phones and Chinese control
Metals of rare soils are hidden stars in gadgets and weapons. They produce magnets inside electric cars, mobile phones, drones and even fighter aircraft F-35.
Right now, the US will receive nearly 70% of these minerals from China, which have recently tightened exports, which caused a scary decrease in shipments by 75% last month.
From now on, MP Materials has been operating the American only main mine for rare soil in Mountain Pass in California.
The connection with the Pentagon strengthens American production and creates a full supplier chain from digging ore to magnets production. CEO James Litinsky appreciated Trump’s administration for “accelerating the independence of the American supply chain”.
A new mowing factory for foreign Reliance by 2028
The “10x devices”, the second MP race, will start on the spot by 2028. Along with their race in Texas now, America will help create their own magnets instead of importing.
The MP also receives a $ 150 million loan to upgrade its mountain pass and adds heavy processing of rare soils. China currently controls 96% of the global output of the magnet, so this step is a big counter.
As one analyst noted, the deputy is “in the driver’s seat” as the only main American producer of rare soils. This year’s increase in stocks increases 92% of profit this year, indicating the excitement of the investor.
Green technology and weapons that benefit from American magnets
It is not just a defense, it is a pure energy. These powerful magnets go to wind turbines and electric vehicles and help green destinations.
Since China uses an export permit as a business weapon, the US is fighting cash and contracts.
The agreement follows the march of President Trump to strengthen critical minerals using emergency powers.
Experts say that rare countries are currently too low for new mines without government aid, which is necessary this partnership.
If they are successful, MP Materials can turn American rocks into high-tech tasks and security, powering everything from iPhone to submarine
(Tagstotranslate) MP Materials
