This is confirming the US Gov't isn't sitting still when it comes to REEs. Will someone decide ETM is a 'worthy' investment (??)
Disclaimer: had been watching MP Materials, but with them shipping off to China for processing, didn't buy any.. And nope, didn't
see this coming (mercy)
Rare Earth Producer MP Materials Soars 50% After US Government Becomes Largest Shareholder | ZeroHedge
The investment marks a "transformational" public-private partnership by the Trump admin, aimed at building a domestic rare earth element supply chain. MP Materials, which owns the only operational rare earth mine in the U.S. at Mountain Pass, California, will use the funds to expand processing and magnet manufacturing capacity.
As part of the deal, the Pentagon will receive convertible preferred shares and warrants equal to a 15% stake—surpassing stakes held by CEO James Litinsky and BlackRock. The shares convert at $30.03 each and carry no cash dividend.
CNBC that the investment will support a second U.S.-based magnet plant, “10X,” expected to begin commissioning in 2028. The Defense Department will guarantee the purchase of all output from the facility for 10 years and backstop pricing at $110/kg for NdPr products, a key material used in permanent magnets for military systems like F-35 jets, drones, and submarines.
The move reflects growing U.S. efforts to reduce reliance on China, which supplied roughly 70% of rare earth imports in 2023, according to the U.S. Geological Survey. Interior Secretary Doug Burgum said in April that the Trump administration is exploring direct equity investments to secure critical minerals.
