MP Materials stock climbs after securing major Pentagon deals
MP Materials saw its stock surge by 40% after announcing new agreements with the U.S. Department of Defense aimed at boosting the nation’s rare earth magnet supply chain.
The deals, valued at $750 million in investments and a $150 million loan from the Pentagon, will fund the construction of a new domestic magnet manufacturing facility, News.Az reports, citing foreign media.
Additionally, the agreements establish a 10-year price floor for the company’s critical rare earth products, reducing U.S. reliance on foreign sources.
MP Materials stock was rising 40% in premarket trading.
“Rare earth magnets are one of the most strategically important components in advanced technology systems spanning defense and commercial applications,” the mining company wrote in a press release. “Yet today, the U.S. relies almost entirely on foreign sources.”
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