Inside look at MP Materials amid the rare earth race

Core Insights - The Trump administration is focusing on securing U.S. supply chains for rare earth minerals through a public-private partnership with MP Materials, which has the Pentagon as its largest shareholder [1][2] - A multibillion-dollar deal was announced by the Department of War to invest in and commit to long-term purchases from MP Materials, which specializes in mining, processing, and refining rare earth minerals [2] - MP Materials received a $400 million investment from the War Department to enhance its separation, processing capabilities, and magnet production to meet defense and commercial demands [3] Industry Context - Rare earth minerals are essential for various advanced technologies, including consumer electronics and military equipment, with China being the dominant global producer and holding the largest reserves [7] - The Chinese government has implemented export controls on rare earths, posing a risk to U.S. military contractors, despite a temporary pause in some restrictions [8] - The geopolitical landscape has prompted U.S. companies to seek partnerships with the government to counter China's dominance in the rare earth sector [5][10] Company Developments - MP Materials is expanding its Fort Worth factory to triple its capacity for producing magnets for major clients like GM and Apple, with a new facility expected to be operational by 2028, aiming for a manufacturing capacity of 10,000 metric tons of rare earth magnets [13] - The company is also enhancing its heavy rare earth separation capabilities at its Mountain Pass facility in California, where extraction and refinement occur [14]