Latest news with #JamesLitinsky
CNBC
15-07-2025
- Business
- CNBC
U.S. moving fast to secure access to critical minerals to counter China's dominance of market, Pentagon says
The Pentagon is taking immediate action to boost critical mineral production in the U.S. and counter China's dominance of the supply chain for rare earth magnets, a defense official told CNBC on Tuesday. The Defense Department last week agreed to buy a direct equity stake in MP Materials, which will make the U.S. government the miner's largest shareholder. MP operates the only rare earth mine in the U.S. located at Mountain Pass, California, and a magnet plant in Forth Worth, Texas. When asked whether the Pentagon is considering similar investments in other U.S. mining companies, the defense official said it is looking at opportunities to strengthen domestic critical mineral production. "Rebuilding the critical minerals and rare earth magnet sectors of the U.S. industrial base won't happen overnight, but DoD is taking immediate action to streamline processes and identify opportunities to strengthen critical minerals production," official said in a statement. Rare earths are used in weapons such as the F-35 warplane, drones and submarines among other other military platforms. The U.S. was almost entirely dependent on foreign countries for rare earths in 2023, with China representing about 70% of imports, according to the U.S. Geological Survey. MP Materials CEO James Litinsky told CNBC last week that he views the public-private partnership with the Defense Department as a model for other companies in industries that are important for national security but struggle to compete against the state-backed enterprises in China. "I'd like to think that this is sort of the first, it's a model," Litinsky told CNBC's "Squawk on the Street" on Thursday. "We have to deliver at MP and show that this is an incredible route to go. But it's a new way forward to accelerate free markets, to get the supply chain on shore that we want." Interior Secretary Doug Burgum said in April that the U.S. government was looking at taking direct equity stakes in critical mineral and rare earth miners to break China's dominance. The Trump administration is also looking at stockpiling critical minerals and creating a sovereign risk insurance fund to protect companies investments' in federally approved projects, Burgum said at an energy conference in Oklahoma City. The Pentagon makes long-term investments in mining, processing and refining critical minerals, the defense official told CNBC. It has invested $540 million so far to support a critical mineral and rare earth supply chain in the U.S. and allied nations, the official said. "That is significant, and DoD will continue to such efforts in accordance with congressional appropriations and statutory authorities," the official said.
American Military News
12-07-2025
- Business
- American Military News
Pentagon becomes largest shareholder in rare earth mining company
MP Materials announced on Thursday that the Department of Defense is set to become the largest shareholder in the rare earth mining company after finalizing an agreement to purchase $400 million of the company's preferred stock. In a Thursday press release, MP Materials confirmed it has 'entered into a transformational public-private partnership' with the Department of Defense to 'dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.' 'This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,' MP Materials founder and CEO James Litinsky said. 'We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication.' According to CNBC News, MP Materials owns the only rare earth mine that is currently operational in the United States. The outlet noted that its rare earth mine is located in Mountain Pass, California. READ MORE: Major company announces $20 billion investment in US economy The rare earth mining company announced that with the Defense Department's new investments, MP Materials will construct a second domestic magnet manufacturing facility that will be used for commercial and defense customers. The company noted that after the facility is constructed, its 'total U.S. rare earth magnet manufacturing capacity will reach an estimated 10,000 metric tons.' In Thursday's press release, MP Materials explained that rare earth magnets are 'one of the most strategically important components in advanced technology systems' for both commercial and defense use. The company noted that the United States is currently almost completely reliant on 'foreign sources' for rare earth magnets. The Defense Department previously emphasized the importance of rare earth materials, which are used in a variety of military weapons systems, such as the F-35 fighter jet, submarines, and drones. The U.S. Geological Survey reported that the United States heavily relied on foreign countries for rare earth imports in 2023 and that China accounted for roughly 70% of the imports. Addressing the new partnership with the Defense Department, MP Materials stated, 'This strategic partnership builds on MP Materials' operational foundation to catalyze domestic production, strengthen industrial resilience, and secure critical supply chains for high-growth industries and future dual use applications.'
Yahoo
12-07-2025
- Business
- Yahoo
Pentagon to Take $400 Million Stake in Rare Earth Miner Outside Vegas
The rare earths sector's magnetism has been undeniable lately. Now, the US Department of Defense is set to become the largest shareholder in Las Vegas-based MP Materials, the owner and operator of the only working rare earth mine and processing facility in the country. The company announced on Thursday that, in addition to US taxpayers footing a $400 million stake and a $150 million loan, the Defense Department has agreed to purchase all of the magnets the company produces from a planned new facility for 10 years. CEO James Litinsky pledged in a CNBC interview that 'the taxpayers are going to make a lot of money' for their generosity. READ ALSO: Delta Air Lines Projects Clearer Skies Ahead and Ferrero Puts Snap, Crackle and Pop into Its Earnings With WK Kellogg Acquisition In case you need a primer, rare earths are 17 elements crucial in compounds needed to make magnets that serve as components in a boggling range of important things. That includes renewable energy technology like solar panels, electric cars, and wind turbines as well as the rechargeable batteries that power smartphones and tablets, and — here's where the senior officers at the Pentagon start salivating — key defense technologies from radar and sonar to fighter jets and submarines. The catch is that one country, China, dominates mining and production. The country accounts for nearly two-thirds of raw material production and 90% of the manufacturing of rare earth magnets. The US, meanwhile, relies on imports of rare earths, with almost 70% coming from China. And, as you may recall from the brain-rattling abundance of geopolitical news this year, the US is currently embroiled in a trade standoff with the Middle Kingdom. Indeed, China has used rare earth export controls as a bargaining chip in ongoing negotiations. Enter the deal with MP Materials, which Litinsky emphasized is a 'public-private partnership' and 'not a nationalization.' Whatever you call it, some of the terms could be generously described as favorable to the company: The Pentagon will purchase a newly created class of preferred shares that can be converted to common stock, plus a warrant convertible at $30.03 per share, which would allow the US to buy more common stock over a 10-year period. Exercising both would give US taxpayers a roughly 15% stake in MP Materials, almost twice the size of Litinsky's 8.6% stake and Blackrock Fund Advisors' 8.3%. As part of the deal, MP Materials will build a second magnet manufacturing facility, slated to begin operations in 2028, dubbed 10X. This facility will join the existing one at its Mountain Pass mine in California's Clark Mountains, increasing its annual rare earth magnet manufacturing capacity to 10,000 metric tons. The US has agreed to buy all the refined neodymium-praseodymium oxide, or NdPr, that MP Materials produces from 2028 for 10 years at $110 per kilogram, a price well above the metal's spot price and historical average (currently, it's roughly $63). Making Up for Losses: In addition to the $150 billion loan from taxpayers, the company is set to receive $1 billion in financing from JPMorgan and Goldman Sachs to build the new facility. With all that public and private firepower behind it, MP Materials' shares rose a whopping 50.6% on Thursday. On the other hand, the company could use the helping hand because of the US-China trade standoff: When the two countries slapped sky-high retaliatory tariffs on each other earlier this year, MP Materials was forced to halt shipments to its biggest customer, China's Shenghe Resources, which accounted for 80% of its revenue last year. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Yahoo
12-07-2025
- Business
- Yahoo
Pentagon Invests in Rare Earth Magnet Producer
Rare earth magnet producer MP Materials Corp. secured a $400 million equity investment from the US Department of Defense to build a new plant, with a $1 billion financing commitment from JPMorgan Chase & Co. and Goldman Sachs Group Inc. James Litinsky, Founder, Chairman and Chief Executive Officer of MP Materials says the investment will allow MP Materials to drastically increase their partnership, and that the Department of Defense is now their largest shareholder. He was joined by Bloomberg News Economic Statecraft reporter Joe Deaux. Sign in to access your portfolio
Yahoo
12-07-2025
- Business
- Yahoo
Why TMC the Metals Company Stock Is Soaring Today
The Pentagon invested $400 million in MP Materials, fueling speculation that more deals could be coming for mining companies like TMC. The Trump administration says shoring up domestic production of key strategic materials is essential to national security. TMC remains a highly speculative, pre-revenue company. 10 stocks we like better than TMC The Metals Company › Shares of TMC the Metals Company (NASDAQ: TMC) are jumping on Thursday, up 8.6% as of 2:46 p.m. ET. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.3% and 0.1%, respectively. TMC's stock is getting a boost from a major deal announced this morning between the Pentagon and another mining company. Last week, President Trump mused about the possibility of the federal government investing in domestic rare earth mining. The U.S. is extremely dependent on foreign rare earth elements -- especially from China -- which are critical to many key defense systems. This morning, MP Materials, which owns the only operational rare earth mine in the U.S., announced that the Department of Defense (DoD) is investing $400 million in the company. The deal will see the DoD become the largest shareholder, controlling nearly twice the shares of CEO James Litinsky and the next-largest shareholder, BlackRock Advisors. Rare earth and critical mineral mining companies across the board saw their shares lifted by the news on the hope that the Trump administration would make additional deals. Although the administration hasn't explicitly stated it will, it has indicated as much. TMC could very well be the beneficiary of a similar deal. Still, this is pure speculation. There are no guarantees. There's a lot of hype behind TMC -- it is entirely pre-revenue -- and I would stay away from the stock unless you have a particularly high risk tolerance and are willing to lose your investment. However, there is a significant upside if things pan out. Before you buy stock in TMC The Metals Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TMC The Metals Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why TMC the Metals Company Stock Is Soaring Today was originally published by The Motley Fool 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
