MP Materials Corp. (NYSE:MP) soared 50.62% after securing a multi-billion-dollar deal with the Department of Defense to boost rare earth minerals production in the US. The agreement includes the construction of a new magnet manufacturing facility and a $1 billion loan from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA. The facility is expected to be operational by 2028, producing 10,000 metric tons of rare earth minerals annually.

The Department of Defense and MP Materials also entered a 10-year agreement where the government agency will purchase 100% of the magnets produced, with profits shared. A floor price commitment of $110 per kilogram for NdPr products was established, and the DOD acquired $400 million worth of MP Materials Corp.’s newly-created preferred shares convertible into common stocks, along with a warrant to purchase additional shares.

In addition to hitting a new all-time high, MP Materials Corp. (NYSE:MP) and the Pentagon have solidified their partnership with a multi-faceted agreement that ensures a steady market for the rare earth minerals produced. The deal includes significant financial backing, production commitments, and stock acquisitions to support the growth and sustainability of the industry.

Read more at Yahoo Finance: MP Materials (MP) Hits New All-Time High As Pentagon Pledges Multi-Billion-Dollar Backing