MP Materials announces $500M common stock offering
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Forbes
5 hours ago
- 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."
Yahoo
6 hours ago
- Yahoo
Apple Drops $500M to Source Rare Earth Materials From U.S. Supplier
Apple (AAPL, Financials) is investing $500 million to secure rare earth magnets from MP Materials (MP, Financials), doubling down on its U.S. supply chain as pressure mounts from President Donald Trump to bring iPhone production stateside. The deal, announced Tuesday, includes direct material sourcing and a new recycling facility in California to process rare earth elements for future Apple products. Apple said the move will help power hundreds of millions of devices beginning in 2027 while creating new magnet manufacturing jobs in Fort Worth, Texas. CEO Tim Cook called the partnership a win for American innovation, noting that rare earth materials are vital to modern tech. This will help strengthen the supply of these vital materials here in the United States, he said in a statement. While the investment supports Apple's sustainability push the iPhone 16e already uses 30% recycled content it also strategically aligns with Trump's insistence on U.S.-made iPhones. Trump recently posted that a 25% tariff could apply if iPhones continue being made in India or other countries. MP Materials currently operates the only U.S.-based rare earth mine, but China still controls over 90% of global rare earth processing. The agreement is expected to reduce some of Apple's long-standing dependency on Chinese supply chains. The rare earths are used in a wide range of Apple devices from magnets in AirPods to components in iPhones and Macs. Both companies will also launch a workforce training program for magnet manufacturing, addressing America's talent gap in advanced hardware assembly. This article first appeared on GuruFocus. 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
Yahoo
10 hours ago
- Yahoo
MP Materials Announces Commencement of Proposed $500 Million Public Offering of Common Stock
LAS VEGAS, July 16, 2025--(BUSINESS WIRE)--MP Materials Corp. (NYSE: MP) ("MP Materials" or the "Company") today announced that it has commenced a $500 million underwritten public offering (the "Offering") of its common stock. All shares of common stock to be sold in the Offering will be offered by the Company. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. MP Materials expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock to be sold in the Offering, solely to cover over-allotments, at the public offering price, less the underwriting discount. The Company currently intends to use the net proceeds from the Offering to fund the acceleration and expansion of our operations, including the 10X Facility, for strategic growth opportunities and for general corporate purposes. J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are acting as lead joint book-running managers of the Offering. Morgan Stanley & Co. LLC is also acting as a book-running manager. A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (the "SEC") and was automatically effective upon filing on February 28, 2025. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website, located at Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, from the offices of J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@ and postsalemanualrequests@ or the offices of Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Attention: Prospectus Department, by telephone at (866) 471-2526, or by email at prospectus-ny@ This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About MP Materials MP Materials (NYSE: MP) is America's only fully integrated rare earth producer with capabilities spanning the entire supply chain—from mining and processing to advanced metallization and magnet manufacturing. We extract and refine materials from one of the world's richest rare earth deposits in California and manufacture the world's strongest and most efficient permanent magnets. Our products enable innovation across critical sectors of the modern economy, including transportation, energy, robotics, defense, and aerospace. Forward-Looking Statements This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of the words such as "estimate," "plan," "shall," "may," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, expectations regarding the proposed offering of our common stock and the use of proceeds therefrom. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of MP Materials. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, those discussed in MP Materials' Form 10-K filed with the SEC on February 28, 2024, Form 10-Q filed with the SEC on May 9, 2025 and Current Reports on Form 8-K filed with the SEC, in each case under the heading "Risk Factors" and other documents filed by MP Materials with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that MP Materials does not presently know or that MP Materials currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect MP Materials' expectations, plans or forecasts of future events and views as of the date of this press release. MP Materials anticipates that subsequent events and developments will cause MP Materials' assessments to change. However, while MP Materials may elect to update these forward-looking statements at some point in the future, MP Materials specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing MP Materials' assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. View source version on Contacts Investors: Martin SheehanIR@ Media: Matt Sloustchermedia@ 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
