Jul 11, 2025 10:42 AM IST
US Stock Market Live: Pentagon Forays Into Rare Earths
The US made its biggest move yet to push back against China’s weaponization of rare earths, with the Pentagon buying into a key American producer to secure supply of magnets critical for military and other applications.
The Department of Defense agreed a $400 million equity investment in MP Materials Corp., the company that revived a dormant mine in California. Together with $1 billion in funding from JPMorgan Chase & Co. and Goldman Sachs Group Inc., the commitment will fund a major new plant making rare-earth magnets.
MP’s shares soared as much as 60% in New York, while other rare earths firms also spiked on the prospect of government underwriting for the industry. Australia’s Lynas Rare Earths Ltd., which is building a refinery in Texas, rose as much as 20% — the most in more than five years.