MP Materials Corporation soared 60% as the Defense Department plans to invest $400 million in the only rare earth mine in the US. The Pentagon’s stake could reach 15% of MP Materials. This move aims to reduce reliance on Chinese imports and boost the domestic critical mineral supply chain.

Interior Secretary Doug Burgum emphasizes the necessity of equity investments in critical mineral companies to strengthen US supply chains. MP Materials’ public-private partnership with the DoD is expected to accelerate the rare earth magnet supply chain and reduce foreign dependency.

The White House’s decision to invest in MP Materials aligns with efforts to decrease US dependence on China for rare earth minerals. These minerals are essential for technology sectors like electronics, defense systems, and robotics. The move signifies a push towards securing crucial resources domestically.

MP Materials’ surge reflects the US government’s strategy to enhance national security by investing in domestic rare earth mineral production. The company’s role as the sole US rare earth mine owner highlights the importance of securing critical resources for various industries, including technology and defense.

Read more at Yahoo Finance: The Pentagon is taking a big stake in a rare earth mining company, sending the stock up 60%