Pentagon to become largest shareholder in rare earth magnet maker MP Materials
A wheeled loader operator fills a truck with ore for its materials in Mountain Pass, Mountain Pass, California.
Steve Marcus | Reuters
The company said on Thursday that the Ministry of Defense would be the biggest shareholder in Nadir Earth Miner MP.
MP Materials has the only operational rare earth mine in the US in Mountain Pass, California. The Company said that Pentagon’s investment will use the revenues of Pentagon’s investment to expand its Nadir Earths processing capabilities and magnet production capacity.
MP Materials shares increased by more than 40% in the news.
Pentagon buys newly created stocks, which can be converted into ordinary stocks of MP materials. It also buys an order that allows it to buy additional stocks in the rare land miner. As of July 9, the order of convertible stocks and ordinary stocks will represent approximately 15% of MP materials as of July 9th.
In April, Interior Minister Doug Burgum said that the Trump administration intends to make direct self -investments to critical mineral companies to break dependence on the US.
MP Materials is building a second domestic magnet production facility to support defense and commercial customers by supporting Pentagon.
The Ministry of Defense will ensure that 100% of the magnets called 10x in the facility are purchased by defense and commercial facilities for a decade after the construction of the facility.
This is an developing story. Please check again for updates.
