Highlights

• MP Materials announces multibillion-dollar partnership with the DoD to establish a massive domestic rare earth magnet manufacturing plant.
• Deal includes $400M DoD equity investment.
• $150M loan provided.
• $1B commercial financing to create 10,000 metric tons of annual magnet production capacity.
• Strategic initiative aims to reshape U.S. rare earth magnet production.
• Objective is to reduce dependence on international supply chains, particularly China.

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In a milestone moment (opens in a new tab) for American industrial policy, MP Materials (NYSE: MP) (opens in a new tab) announced today a multibillion-dollar public-private partnership with the U.S. Department of Defense (DoD) that reshapes the future of rare earth magnet production—and with it, the balance of power in the global supply chain. With the DoD poised to become MP’s largest shareholder, the United States has signaled it is no longer content to merely talk reshoring. It’s building it.

The centerpiece is the planned “10X Facility”—a massive domestic rare earth magnet manufacturing plant expected to push MP’s U.S. capacity to 10,000 metric tons annually by 2028. This would make MP one of the world’s largest vertically integrated magnet producers, with a secured downstream pathway from mine to magnet. The DoD funding is essentially attempting to take on China via what Rare Earth Exchanges (REEx) has described as a national treasure trove.  Another sign of the seriousness of the effort is the option for the U.S. government to take ownership.  It would appear that the Trump administration is starting to understand the seriousness of the situation.

Elements of what REEx has advocated are included in the deal.

Key elements of the deal include:

• $400M DoDequity investment (convertible preferred shares and warrants), positioning the U.S. government to own up to 15% of MP post-conversion.
• $150M DoD loan to expand heavy rare earth separation at Mountain Pass.
• $1B commercial financing commitment from JPMorgan and Goldman Sachs.
• 10-year NdPr price floor of $110/kg, shielding MP from Chinese price manipulation.
• 10-year100% magnet offtake agreement, ensuring demand for every magnet the new plant produces.

This is more than a factory. It’s a strategic bet on American magnet independence—one that marries defense priorities with commercial scale. It also de-risks the kind of capital-intensive infrastructure few private players can afford alone.

But questions remain: Where will the 10X Facility be located? Will regulatory delays or environmental challenges bog it down? Can MP execute at scale—vertically integrating mining, separation, metallization, and magnetics—without quality or yield issues? And critically, will this catalyze a broader magnet ecosystem in the U.S., including sintering, testing, and allied materials?

MP’s CEO James Litinsky called the deal “decisive action by the Trump administration.” That’s not hyperbole. The agreement rivals CHIPS Act-level support in its structure and ambition. With DoD deeply embedded in MP’s cap table, the signal to Wall Street and Beijing is clear: the U.S. magnet renaissance is no longer hypothetical.

REEx concurs that this deal is certainly next level.  But the push for industrial policy must ensue.

MP Materials Profile

Currently priced at $30.03, with a surge pre-market trading.  The deal terms ensure longer-term viability.

As of July 10, 2025, MP Materials has a market capitalization of approximately $4.91 billion, boosted by a 41% pre-market surge following its DoD partnership announcement. Despite robust revenue growth of nearly 25% year-over-year (trailing twelve months revenue: $216 million), the company remains unprofitable, reporting a -48.4% profit margin and negative EBITDA of -$84.7 million. Its forward P/E ratio sits at 24.1, signaling investor confidence in future earnings. MP holds $759 million in cash against $933 million in debt, with a healthy current ratio of 4.12. However, heavy short interest—nearly 21% of float—reflects ongoing market skepticism. With $211 million in negative levered free cash flow and a 90% debt-to-equity ratio, MP’s financials highlight both risk and ambition as it builds out U.S. rare earth magnet capacity at scale.

Rare Earth Exchanges Bias Meter™

For investors, a proprietary index evaluating rare earth media for clarity, speculation, and accuracy. Scale: 0 (worst) to 10 (best).

Category	Score	Notes
Accuracy	10	Facts align with SEC-filed disclosures and DoD statements
Clarity	9	Complex financing terms clearly outlined
Speculation	3	Minor promotion in tone; unknowns like execution risk not addressed
Independence	7	Clearly MP-forward; press release origin, not independent journalism.
Strategic Insight	10	Significantly highlights national implications and downstream impact.
Total	39/50

© 2025 Rare Earth Exchanges Bias Meter™