Latest news with #rare earth minerals
The Standard
4 days ago
- Science
- The Standard
China's exports of rare earth magnets to the U.S. skyrocket in June
Samples of rare earth minerals from left, Cerium oxide, Bastnasite, Neodymium oxide and Lanthanum carbonate are on display during a tour of Molycorp's Mountain Pass Rare Earth facility in Mountain Pass, California June 29, 2015. REUTERS/David Becker/File Photo
Forbes
7 days ago
- Business
- Forbes
DoD Is The Largest Investor In Only American Rare Earth Mineral Mine
Rare earth and critical minerals are essential to powering today's modern and digital world Under the 1933 Buy American Act and the 1941 Berry Amendment, the United States military is generally required to buy American-made products. The laws further prioritize domestic sourcing for goods, and that products for military use contain a certain percentage of U.S. components and materials. Where that has been a problem is in the increasingly reliance on components that require rare earth minerals, which the United States has a limited supply of, while upwards of 70% are imported from China. To help address the issue, the U.S. Department of Defense announced last week that it had acquired a 15% stake in the MP Materials mine, becoming the company's largest shareholder. MP Materials, the operator of the only American rare earths mine, received a $400 million investment from the Pentagon, which will help fund the processing capabilities at its Mount Pass, California, facility and enable the construction of a second magnet manufacturing plant. "It's strategically important for the Pentagon to ensure that its Tier 1 industrial base has access to U.S.-sourced rare earth metals and magnets," explained David Argyle, CEO of REalloys Inc., a company focused on the production of rare earth elements and high-performance magnet materials. "The MP DoD transaction provides a very healthy base load of supply to meet demand," Argyle added, but acknowledged that additional US sources need to be available commencing in 2026, 2027, and beyond. Greater Investment Is Needed There has already been speculation that President Donald Trump could use emergency powers to allow the United States to gain greater control over domestic industries and resources. The Defense Production Act, a Cold War-era law that grants the president significant emergency authority to control domestic industries, was invoked by Trump during his first term and by former President Joe Biden during the pandemic. However, investments are also needed, suggested Brandon Daniels, CEO of AI supply chain company Exiger. "Critical minerals are the lifeblood of our defense capabilities. Everything from specialized engine components for high heat environments to navigation systems demands rare earth minerals at the beginning of the supply chain," said Daniels. "It's a national security imperative that the defense department use its resources to create sustainable independent streams of these resources." The $400 million investment shouldn't be seen as too little or too late. "The Pentagon is doing this because it's not always economically viable to invest the capital expenditure at the beginning of the process, and the U.S. ought to accelerate its access to these minerals," added Daniels. Such strategic investment in rare earths and critical minerals is a crucial step in securing our domestic supply chain and enhancing national security. Still, it is just part of the solution. "The defense industry depends on these strategic materials for everything from weaponry, base operations, to communications and other additional technologies," noted David Klanecky, CEO of lithium battery recycling firm Cirba Solutions. "Investment by the Department of Defense demonstrates a prioritization of this key market, brings urgency to the sector, and underscores the importance of developing a reliable supply at home rather than depending on raw material imports from foreign entities of concern." Waste Not, Want Not Without stable access to rare earths and critical minerals, our national security is at significant risk. To this end, the U.S. military needs to be far less disposable. As with consumer products that end up in landfills, a vast amount of valuable materials is never harvested and reused. "It is also important to look at the supply chain holistically and invest in all domestic manufacturing," Klanecky added. "For example, battery recycling can significantly boost domestic production and refinement of critical minerals, and it is one of the most immediate and scalable ways to secure supply and keep valuable materials in circulation in the U.S. long after they've been extracted." More Efforts Need To Be Made The $400 million investment by the Pentagon should be viewed as a positive first step, but it is far from resolving a problem that has been decades in the making. "The one mining project won't be enough to fulfill all demand for all rare earths that are used in advanced technologies," warned Daniels. "But it is a big step in the right direction," Daniels continued. "Between this type of mining and the advancements in recycling, we can achieve independence for many of our most critical rare earths. For instance, with coal ash leaching in the United States, we could generate enough germanium to supply all of our Semiconductor, Photovoltaic, and Fiber Optic cable needs." The growing need for rare earths is just one of several problems that the Pentagon faces, along with manufacturing supply chain challenges, an aging workforce at America's shipyards, and cost overruns on nearly all its programs. However, the demand for rare earths needs to be taken as seriously as the other issues, yet there is no easy solution. "Rare earth and critical minerals are essential to powering today's modern and digital world. Meeting the growing demand for these materials will require a comprehensive strategy that includes investment, partnerships, and an overall diversified approach across extraction, refinement, and recycling," said Klanecky. "Taking this holistic view of the supply chain is necessary if the U.S. wants a long-term solution to creating a stable domestic supply and enabling the country to achieve national security goals."
South China Morning Post
15-07-2025
- Business
- South China Morning Post
Apple to buy rare earths from Pentagon-backed US producer MP in US$500 million deal
Apple has struck a US$500 million deal to buy rare earth minerals from MP Materials, the US producer that just last week secured backing from the Pentagon. The two companies will build a factory in Texas, with neodymium magnet manufacturing lines tailored for Apple products, the iPhone maker said Tuesday in a statement. Apple said the spending on rare earth minerals is part of its earlier pledge to invest more than US$500 billion in the US over the next four years. Shares of MP Materials surged as much as 18 per cent in New York to the highest intraday price since April 2022, while Apple's stock rose as much as 1 per cent. Fox News reported some details on the supply deal earlier on Tuesday. The world's dependence on China for rare earth permanent magnets that are essential for consumer tech, cars, wind turbines and fighter aircraft has become a flash point in the US trade war with the Asian nation. After the Trump administration imposed 145 per cent tariffs on China, boasting that it had the upper hand, Beijing turned the tables by essentially shutting down exports of the critical component. MP Materials operates the sole US rare earth mine at Mountain Pass in California.
Yahoo
12-07-2025
- Business
- Yahoo
MP Materials (MP) Hits New All-Time High As Pentagon Pledges Multi-Billion-Dollar Backing
MP Materials Corp. (NYSE:MP) is one of the . MP Materials soared 50.62 percent on Thursday to hit a new high after sealing a multi-billion-dollar deal with the Department of Defense (DOD) to ramp up the production of rare earth minerals in the US. At intra-day trading, MP Materials Corp. (NYSE:MP) touched a new 52-week high of $48.01 before paring gains to end the day just up by 50.62 percent at $45.23 apiece. In a statement, MP Materials Corp. (NYSE:MP) said that part of the agreement will see the construction of a new magnet manufacturing facility—to be called the 10X Facility—at a soon-to-be-chosen location, to serve both defense and commercial customers. The company secured a $1-billion loan from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA for the site development, which is set to be fully operational in 2028 and boost rare earth minerals production to 10,000 metric tons. Additionally, the DOD and MP Materials entered into a 10-year agreement where the government agency agreed to ensure that 100 percent of the magnets produced will be purchased by the defense and commercial customers, and that profits will be shared. Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. Both parties also established a floor price commitment of $110 per kilogram for NdPr products stockpiled or sold. Lastly, the DOD acquired worth $400 million of MP Materials Corp.'s (NYSE:MP) newly-created preferred shares convertible into common stocks, and a warrant permitting the government agency to purchase additional shares of its common shares. While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
11-07-2025
- Business
- CTV News
Trump destroying ‘six decades of economic integration' with tariff threats to Canada: Ham
Watch CTV News U.S. Political Analyst Eric Ham says Trump is in a 'race against China for rare earth minerals' as he continues to put tariffs on trade partners.
