https://www.mining.com/mp-materials-lands-400m-deal-with-pentagon/
The agreement includes several key commitments. The DoD has signed a 10-year off-take deal that establishes a price floor of $110 per kilogram for neodymium-praseodymium (NdPr) materials. It also guarantees that 100% of magnets produced at the new 10X Facility will be purchased for defence and commercial use for a decade following commissioning.To finance the construction of the 10X Facility, MP has secured a $1 billion commitment from JPMorgan Chase and Goldman Sachs, subject to customary terms. Additionally, the company expects to receive a $150 million loan from the DoD within 30 days to support the Mountain Pass expansion.The DoD has also committed to buy a newly created series of convertible preferred stock, along with a warrant to buy additional common shares at an initial price of $30.03 per share. The transaction is expected to close on July 11, 2025. Upon conversion and exercise, the DoD would own about 15% of MP Materials’ outstanding common shares.MP Materials currently operates the world’s second-largest rare earth mine at Mountain Pass, which began operations in 2017. Refining started in 2023, and the company plans to begin supplying rare-earth magnets to General Motors by year-end. It is also commissioning a new magnetics plant in Texas, named Independence, to anchor its downstream operations.
MP soars on partnership that makes Pentagon the largest shareholder, page-2
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