MP Materials Corp. (NYSE:MP) the only fully integrated domestic rare-earth producer in the US, announced a landmark public‑private partnership with the U.S. Department of Defence (DoD). Through this strategic agreement, the DoD will acquire $400M newly issued convertible preferred shares of common stock and a warrant permitting them to purchase additional shares of common stock. This transaction establishes the DoD as MP’s single largest shareholder, with the convertible preferred stock and warrants representing 15% of the company’s issued and outstanding shares of common stock as of 9 July 2025.
Funding Details
The DoD has also entered into a 10-year agreement with MP Materials, establishing a price floor commitment of US$110 per kilogram for the company’s NdPr products, ensuring consistent economics and reducing the vulnerability to non-market forces.
With this funding, MP Materials will be constructing the company’s second domestic magnet manufacturing facility (the 10X Facility), at a yet to be announced location. Once this facility is complete, MP Materials’ total US rare earth magnet manufacturing capacity will be approximately 10,000mt. The DoD, as part of this deal, has pledged to purchase 100% of magnet output from the 10X Facility for the next 10 years.
MP Materials has also received a commitment from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA that they will provide US$1B in financing to help cover the cost of construction and development for the 10X Facility.
Finally, an additional US$150M loan was pledged from the DoD to fund upgrades to MP Materials’ Mountain Pass rare earth separation facility.
Strategic & Market Impact
MP’s stock leapt around 50% today, depending on reports, reaching levels not seen since April 2022.
This deal is a pivotal element in US policy as they seek to grow domestic supply chains and reduce their reliance on Chinese supply, amid geopolitical tensions.
James Litinsky, Founder, Chairman, and CEO of MP Materials commented, “This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence. We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication.”
