Pentagon buys $400M stake in rare-earth miner to cut China dominance

The Defense Department will invest $400 million in MP Materials, making it the largest shareholder in the only US-based rare-earth mining company.

MP’s stock jumped 50% after the announcement. 

The Pentagon will also lend $150 million and back a new magnet facility to reduce reliance on China, which dominates global supply chains. 

MP Materials, based in Las Vegas, operates the Mountain Pass mine in California. 

The deal bans sales to China and guarantees a minimum price for key materials for 10 years.

The move signals a shift in US strategy to actively subsidize critical minerals vital for weapons systems, echoing China’s own industrial policy tactics.