U.S. Strikes Back: Defense Dept Becomes MP’s Largest Shareholder

Pentagon’s $400M investment catapults MP Materials and signals a new era of American rare earth independence

Editorial Team (ET)July 11, 2025

In a seismic shift that rattled both the mining sector and global geopolitics, the U.S. Department of Defense has stepped in with a $400 million investment in MP Materials, instantly becoming the rare earth miner’s largest shareholder. The move is more than financial—it’s a full-throated commitment to restoring America’s grip on critical supply chains, particularly in the high-stakes world of rare earth elements.

MP Materials owns the only operational rare earth mine in the United States, a high-grade site tucked into the dusty hills of Mountain Pass, California. The mine lies just 60 miles southwest of Las Vegas, but its implications reach deep into the Pentagon’s war rooms and Wall Street’s trading floors. As global tensions rise and the U.S.-China rivalry intensifies, the Defense Department isn’t just investing—it’s betting on domestic sovereignty.

Shares of MP Materials surged over 50% on the announcement, blasting past $30 as traders digested the magnitude of Washington’s commitment. The Pentagon’s acquisition of newly issued preferred stock gives it conversion rights at $30.03 per share. When fully exercised, the position could amount to roughly 15% of MP’s total equity—catapulting it ahead of existing shareholders like CEO James Litinsky and BlackRock Fund Advisors.

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