MP Materials Corp (NYSE:MP) received a $400 million investment from the Pentagon to secure the U.S. supply chain for rare earth magnets critical for defense applications, causing its stock price to surge over 50% in one day. The investment makes the Department of Defense the company’s largest shareholder, controlling approximately 15% of MP’s stock through preferred shares and warrants.
The funding will aid MP in completing its new “10X” magnet facility in Texas and enhance operations at its Mountain Pass mine in California. Year-to-date, MP’s stock has increased by over 180%, reflecting a significant reassessment of its role in U.S. industrial and defense strategies amidst rising concerns over rare earth material independence.
