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The U.S. Department of Defense (DoD) announced a $400 million investment into MP Materials Corp. (MP), which operates the Mountain Pass mine in California, the largest rare earth mining facility in North America. This investment, disclosed on [insert date], positions MP as a critical player in reducing U.S. reliance on Chinese rare earth elements, essential for technologies from electric vehicles to national defense systems.
The Pentagon’s investment includes preferred stock convertible at $30.03 per share and a $150 million loan to expand MP’s facility. MP Materials has secured a $1 billion financing commitment from JPMorgan & Chase Co. and Goldman Sachs to establish a magnet manufacturing facility. The Pentagon has also guaranteed to purchase all produced magnets at a price floor of $110 per kilogram for the next decade.
This strategic investment reflects America’s urgent need to secure its supply chains amid rising global competition, especially with China. The company’s market capitalization stands at approximately $5 billion, highlighting its potential for future growth within the national AI infrastructure buildout.
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