Mentioned:
The United States government is very focused on the future of rare earth elements. Which is exactly why they’re taking an equity stake in MP Materials.
What’s happening:
- MP Materials (NYSE: MP) has landed a $400M USD strategic investment from the United States Department of Defense
By the numbers:
- MP Materials will issue the United States Department of Defense preferred shares and warrants that will give them an equity stake of up to 15% of the entire company
- As part of the new strategic investment, MP Materials will also guarantee pricing of $110 USD per kilogram of neodymium and praseodymium to the United States Department of Defense
Why it matters:
- This is the first time in American history that the United States Department of Defense has ever taken an equity position in a publicly traded rare earth company
Going deeper:
- MP Materials and the United States Department of Defense will also collaborate together on building a new magnet production facility based in America
