July 14, 2025 — In a major strategic move aimed at securing the United States’ access to critical minerals, the Pentagon has become the largest shareholder in MP Materials, the nation’s only active rare earth producer. The decision underscores growing national concerns over dependence on China for rare earth supplies, which are essential for defense systems, electric vehicles, and renewable energy technologies.
MP Materials owns and operates the historic Mountain Pass mine in California and is developing a fully integrated supply chain from extraction to processing and permanent magnet production. The company plays a vital role in the U.S. push for mineral independence, especially as demand for rare earth elements continues to surge globally.
The U.S. Department of Defense’s investment was made through funds allocated under the Defense Production Act and related strategic programs. With this equity stake, the Pentagon now holds a significant influence over the company’s operations, ensuring long-term access to critical raw materials required for national security.
“This investment is about strengthening our industrial base and reducing vulnerabilities in the supply chain for critical defense technologies,” a senior defense official said.
China currently dominates more than 70% of the global rare earth market, raising concerns in Washington about the potential risks to supply disruptions amid ongoing geopolitical tensions. The U.S. has identified rare earths as vital to the development of missiles, advanced radar systems, fighter jets, and other high-tech military platforms.
In response to these concerns, MP Materials has accelerated its efforts to localize the entire rare earth supply chain. The company is constructing a rare earth magnet manufacturing facility in Fort Worth, Texas, which is expected to be operational by late 2025. Once completed, the plant will supply magnets to major U.S. defense contractors and electric vehicle manufacturers, further reducing reliance on foreign sources.
Analysts say the Pentagon’s involvement signals a broader policy shift towards protecting and investing in domestic resources vital for both economic and military strength. It may also pave the way for increased private and public investment in rare earth mining and refining projects within the United States.
“The Mountain Pass site has historic significance, but its future role in safeguarding U.S. technological dominance is even more critical,” said an industry expert.
With rare earth elements becoming increasingly indispensable in the global transition to cleaner and smarter technologies, this strategic partnership between the federal government and MP Materials is seen as a landmark effort to future-proof the nation’s resource security.
