Thu, 10 Jul 2025

Thu, 10 Jul 2025 US government to invest in rare earths production

The government is to become the biggest shareholder in the US's only operational rare earths mine.

* The US government will become the biggest shareholder in Mountain Pass, California's only operational rare earths mine.
* MP Materials, which owns the mine, has agreed with the US Department of Defense to reduce America's dependency on imports of rare earths.
* For 10 years, the US government will guarantee a minimum price of $110 per kg for neodymium and praseodymium output from the mine.
* The deal aims to increase domestic supplies of rare earths, which are crucial for making permanent magnets in electric cars, wind turbines, and other technologies.
* MP Materials will build a new facility in the US to increase the production of useable products from the raw materials mined at Mountain Pass.
* The deal is worth $400m, with funding coming from the Department of Defense buying newly created shares.
* The move follows concerns that China has used its control of the industry to push prices down and force companies out of business.
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