Magnets, Missiles and Mines: How MP Materials became the Pentagon's secret rare earths weapon for next-gen arms
MP Materials
runs the only operational rare earths mine in America, at Mountain Pass, California. To keep it alive and expanding, the Department of Defense will spend $400 million on new preferred shares, giving it around a 15% stake in the company. JPMorgan and Goldman Sachs are adding $1 billion more to help build the next phase.
A guaranteed market for a fragile industry
The real kicker is the safety net. For the next decade, the US government guarantees MP Materials at least $110 per kilogram for its neodymium and praseodymium output. If prices sink below that, taxpayers cover the gap. If prices rise above, the government gets 30% of the profit. As CEO James Litinsky put it, 'The taxpayers are going to make a lot of money.'
It's a tough deal. But without it, the whole operation risks collapse under China's low-cost competition. The Pentagon also gets every magnet MP's new plant makes for 10 years — enough to feed both military and commercial demand.
A second Magnet plant on the way
Mountain Pass alone can't do it all. So MP Materials will build a second magnet factory, the '10X Facility,' alongside its existing Texas project. Once the new site starts running in 2028, America's home-grown magnet output should hit 10,000 metric tons a year. The goal is clear: end the need to ship mined ore to China just to buy it back as finished magnets.
Live Events
Litinsky called it a 'public-private partnership' that ties national security to business survival. He told investors, 'We understand that this partnership is ultimately on behalf of the taxpayers and our national security, and with that comes a great responsibility to get this done right.'
Trade wars and tariffs: How we got here
This isn't just about economics. It's a strategic fight. China's near-total control of rare earths lets it squeeze supply at will. Last year, Beijing slapped new export rules on these critical minerals, just as tariffs rose on both sides of the Pacific. MP used to ship its entire output to Shenghe Resources, a Chinese company partly owned by the state. But tariffs as high as 125% killed that deal. Now, the US is forcing a break from that loop.
Doug Burgum, US Interior Secretary, summed up the stakes in April: America must 'break dependence on China' for materials that end up in F-35s, drones and submarines.
Europe's parallel push
It's not just the US feeling the heat. The European Parliament branded China's export controls 'unjustified' and 'intended to be coercive.' They want the EU to speed up its Critical Raw Materials Act to slash dependence on foreign imports. China's foreign minister brushed off the backlash, saying it's China's 'sovereign right' to control materials with both civilian and military uses.
Big plans, big bets
To get this over the line, the Pentagon will also loan MP Materials $150 million to expand heavy rare earth separation at Mountain Pass. Together with the new plants, this should help the US make everything from wind turbines to MRI scanners without relying on a single foreign refiner.
No one's pretending it's cheap or quick. Rare earth prices don't make new mines profitable on their own. Government support makes the risk worth it. MP Materials' shares shot up over 50% after the deal, adding to an already impressive 92% gain this year.
This is about turning American rocks into American jobs and resilience. It's about building a full supply chain that can fuel clean energy, advanced tech and national defence — without strings pulled in Beijing.
The real value here isn't just the minerals buried under Mountain Pass. It's the bet that a strategic resource can stay American, even when the global market wants the cheapest bidder. If it works, the magnets spinning inside future Teslas, wind turbines and fighter jets will come with a stamp that says: Made in the USA.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
27 minutes ago
- Time of India
Jeff Bezos' Blue Origin to launch Indian-origin investor Arvi Singh Bahal and five others to space on August 3 aboard New Shepard rocket; full crew details and launch timing
Blue Origin , the aerospace company founded by Amazon's Jeff Bezos , is preparing for its next milestone in commercial spaceflight. On August 3, 2025, the NS-34 mission will carry six civilians on a suborbital journey aboard the reusable New Shepard rocket. Among the crew is Arvi Singh Bahal , an Indian-origin investor and entrepreneur now based in the US, who will join five other international space tourists. The 11-minute flight will provide breathtaking views of Earth from more than 60 miles above sea level and several minutes of weightlessness, continuing Blue Origin's efforts to make space accessible to non-professional astronauts. Blue Origin's NS-34 includes Indian-origin Arvi Singh Bahal and crypto tycoon Justin Sun The NS-34 mission features a hand-picked crew representing a broad spectrum of nationalities and professions—from cryptocurrency and finance to science, journalism, and education. Arvi Singh Bahal: Born in India and now a US citizen, Bahal is a real estate investor and tech enthusiast who has funded several educational initiatives and space research projects. Known for promoting STEM education among underserved communities. Justin Sun: A prominent Chinese entrepreneur and crypto billionaire, Sun founded TRON, a blockchain-based decentralized platform. He also acquired BitTorrent in 2018 and has been vocal about integrating blockchain technology with space innovation. Sun previously secured a seat on a space mission with SpaceX but is now realizing his orbital dream with Blue Origin. Gokhan Erdem : Hailing from Turkey, Erdem is the CEO of a major logistics and infrastructure company. He has invested in renewable energy and AI applications in construction. His participation highlights the growing interest from industrial leaders in experiencing space firsthand and advocating for sustainable technological progress. Deborah Martorell : A celebrated meteorologist and science communicator from Puerto Rico, Martorell has spent decades educating the public about climate change, weather systems, and planetary science. Her role on NS-34 marks a symbolic journey for Caribbean representation in space and reflects the mission's emphasis on public engagement with science. Lionel Pitchford : A British-born philanthropist and former language teacher, Pitchford has lived in Spain for over 20 years. Known for his humanitarian work with refugees and his advocacy for global education, Lionel's selection aligns with Blue Origin's inclusion of socially impactful figures in its passenger lists. James 'J.D.' Russell : An American venture capitalist and aerospace startup founder, Russell launched Alpha Funds and later Alpha Aerospace, a company working on autonomous drone systems and satellite servicing tech. He brings technical insight to the journey and symbolizes the next wave of space-focused entrepreneurs. Together, this diverse group reflects a new era of spaceflight where civilian explorers from varied sectors and continents share the frontier. Blue Origin New Shepard rocket's launch date, location, and precise timing for Blue Origin's suborbital spaceflight The NS-34 launch is scheduled for Sunday, August 3, 2025, with liftoff expected at 7:30 a.m. Central Time (8:30 a.m. Eastern Time), that is 6:00 p.m. Indian Standard Time (IST) on the same day. The flight will launch from Launch Site One, Blue Origin's private spaceport in West Texas, located about 140 miles east of El Paso and near the US–Mexico border. The secluded desert location is ideal for vertical launches and recoveries, and it has been the site for all previous New Shepard missions. Weather permitting, the countdown will proceed as planned, with final checks on vehicle systems and crew safety protocols completed in the hours leading up to liftoff. What the crew will experience during their 11-minute journey to the edge of space The six-member crew aboard New Shepard will embark on an unforgettable suborbital adventure that compresses the thrill and awe of space travel into just over 11 action-packed minutes. While brief, the mission is carefully designed to offer a complete spaceflight experience—from liftoff and microgravity to atmospheric re-entry and soft landing. After the countdown reaches zero, the New Shepard rocket will blast off vertically from Launch Site One, rapidly ascending into the sky and accelerating to more than three times the speed of sound (over 2,000 mph). Within two to three minutes, the spacecraft will have pierced through the lower atmosphere, its engines roaring beneath the passengers' feet as it climbs toward the Kármán line, located at an altitude of 100 kilometers (62 miles)—the internationally recognized boundary of space. Around this point, the booster stage will separate from the crew capsule. From here, the experience transforms from a rocket ride to pure serenity as the capsule coasts through the vacuum of space in a silent arc. Inside, gravity essentially disappears. As the capsule floats above Earth's atmosphere, the passengers will unstrap from their seats and float weightlessly, experiencing microgravity for approximately 3 to 4 minutes. This is the moment most space tourists describe as life-changing—when they drift freely within the cabin, twist midair, and gaze through the capsule's massive panoramic windows that provide breathtaking, wide-angle views of Earth's curved horizon, the deep blackness of space, and the sun shining unfiltered by the atmosphere. The interior of New Shepard's capsule is designed for comfort and visibility. It features: Six individual reclining seats, each with its own communication and safety system The largest windows flown in space, accounting for one-third of the capsule's surface area Cushioned walls and handholds to make floating safer and more enjoyable Cameras to capture every second of the experience from multiple angles After this brief but powerful encounter with space, the capsule will begin its fall back to Earth, entering the upper atmosphere at subsonic speeds. This portion of the flight is often referred to as a "stable freefall," meaning the capsule falls in a controlled orientation without tumbling. At around 5,000 feet, three large parachutes will deploy, dramatically slowing the capsule's descent. Just seconds before touchdown, retro-thrusters will fire to cushion the final impact, allowing for a gentle, upright landing on the desert floor of West Texas. Rescue crews and Blue Origin staff will be waiting nearby, ready to recover the capsule, assist the passengers, and celebrate their return. The entire journey—from ignition to touchdown—will take about 11 minutes, but for the six space travelers aboard, it will be an experience that lingers for a lifetime. This immersive trip not only gives passengers their first view of Earth from space but also instills a deeper appreciation for the fragility and beauty of our planet—an experience often referred to as the 'Overview Effect' by astronauts who have traveled before them. Where and how to watch the Blue Origin NS-34 mission live Blue Origin will livestream the full NS-34 mission on its official website, beginning approximately 30 minutes before liftoff. The broadcast will include live views of the launch pad, onboard footage from inside the capsule, and mission commentary. Space enthusiasts, students, and curious viewers worldwide can tune in to witness this next step in civilian space exploration. Previous Blue Origin launches have attracted millions of live viewers, and the NS-34 event is expected to do the same. Blue Origin's expanding space program and vision beyond Earth The NS-34 mission continues Blue Origin's ambitious journey in democratizing access to space. Since Jeff Bezos' own flight aboard New Shepard in July 2021, the company has flown over 70 passengers on 13 crewed flights. It has made spaceflight possible for scientists, educators, celebrities, and private citizens alike. Beyond New Shepard, Blue Origin is developing New Glenn, a much larger, orbital-class rocket aimed at competing with SpaceX's Starship. The 320-foot-tall vehicle completed its first test launch in January 2025 from Cape Canaveral, Florida, and may fly again later this year. New Glenn is designed to support both NASA missions and commercial satellite deployments. As Blue Origin moves closer to routine space access, missions like NS-34 prove that the future of spaceflight lies not just in orbit, but in opening the experience to dreamers and doers from all corners of the Earth.
Time of India
28 minutes ago
- Time of India
US defense bill proposes examination of Apple display supplier
A measure added into a massive U.S. defense spending bill in recent weeks will, if passed, ask the Pentagon to determine whether one of Apple's display suppliers should be listed as a Chinese military company. Being on the list does not block companies from doing business in the U.S. but will in coming years block them from being part of the U.S. military's supply chain. The bill, known as the National Defense Authorization Act, was approved in July by key committees in both houses of the U.S. Congress. The final bill, considered a "must-pass" because it funds the U.S. military, is expected to become law later in the year. When the bill was approved by the U.S. House of Representatives Armed Services Committee, a newly added amendment for the first time asked the U.S. Defense Department to consider whether BOE Technology Group Co, listed on Apple's official suppliers list, should be added to a list of firms that allegedly aid China's military. BOE and Apple did not respond to requests for comment. Craig Singleton, a China expert at the Foundation for Defense of Democracies, a Washington think-tank, said Beijing had offered billions of dollars in subsidies, tax breaks and loans to help firms such as BOE dominate global panel production. "This creates a single-source vulnerability that could be easily exploited to disrupt or degrade U.S. military operations, not to mention undermine commercial supply chains, during a conflict or period of heightened bilateral tension with Beijing," Singleton added. A study published last month by New York-based NERA Economic Consulting and commissioned by BOE's U.S. subsidiary found that the display industry, which includes major Korean players such as Samsung Electronics and LG Electronics, remains highly competitive, with no single player capable of significantly affecting global prices. "There is no credible risk of a supply chain disruption by mainland China display manufacturers," the report said.
India.com
30 minutes ago
- India.com
Why is India's Tejas MK2 much better than F-35 from US? Indigenous fighter jet can...
Why is India's Tejas MK2 much better than F-35 from US? Indigenous fighter jet can... After the way Trump has dropped the bomb of 25% tariff on India , it is also being feared that the US President is angry about not being able to sell his goods? This development comes at a time when there is a lot of discussion going on about the deal of the fifth generation US stealth fighter jet F-35. In such a situation, it is important to understand that in what sense is the Tejas Mk2 that India is making in its country any less than its expensive fighter jet? What is the difference between F-35, Tejas Mk2? US company Lockheed Martin makes mainly three versions of F-35 fighter aircraft. The price of the lowest version of these is more than $82.5 million. The price of F-35B, which was stuck in Kerala for 39 days, is $109 million. On the other hand, the estimated cost of Tejas MK2, which Indian company Hindustan Aeronautics Limited (HAL) is working on, is going to be only around $50 to $60 million. Speed and strength: The American fighter jet F-35 uses a 43,000lb thrust engine. Its speed is Mach 1.6. That is, 1,960 kilometers per hour. Whereas, the GE F414 engine being used in Tejas Mk2 produces a thrust of 98 kilonewtons. That means its speed will be Mach 1.8, that is, it can tear through the winds at a speed of 2,205 kilometers per hour. F-35 is equipped with integrated AESA radar, 360 degree camera and advanced data fusion equipment, which gives the pilot information about the real time location of enemies. At the same time, our Tejas Mk2 is also being equipped with the best AESA radar, infrared search and track equipment is being installed in it and the cockpit is being designed in such a smart way that many targets can be tracked simultaneously. Weapon and payload capacity: The F-35 can carry up to 8,160 kg of weapons on a mission. Tejas Mk2, despite being a 4.5 generation fighter, is capable of carrying 6,500 kg of weapons. The Indian fighter is also capable of flying simultaneously carrying indigenous, western and Russian weapons, bombs and missiles. Firepower and flight capability: The combat range of the F-35 is about 1,500 km, while it can fly up to 2,200 km in a single round without refueling (ferry range). The combat range of Tejas Mk2 is about 3,000 km (with drops or additional tanks); and due to the ability to refuel in the air and larger fuel tanks, it is able to fly for longer missions. Meaning, here too the difference between the two is clear. How much difference does stealth technology make? The F-35 is a fifth-generation stealth fighter jet. This technology enables it to remain hidden from enemy radars, infrared sensors and other detection systems. All this is due to its special design and the special material used in it, which enables it to deceive the radar. While radar-evading elements have been installed in Tejas Mk2, its improved and new canard wings make it 75% more advanced than its previous version.
