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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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From: elmatador7/17/2025 4:47:53 AM
   of 13771
 
DoD buys MP Materials Corp. (NYSE: MP), a company that mines rare earth elements in the California desert.
announced earlier today (July 10, 2025), which reads like something out of an industrial strategy playbook.

The Department of Defense has committed a multibillion-dollar package to turbocharge MP Materials’ output of rare earth magnets on U.S. soil.

This includes financing for a sprawling new magnet manufacturing facility (charmingly code-named the “10X” factory) that is slated to come online in 2028.

Once up and running, that plant is expected to produce about 10,000 metric tons of magnets a year—enough to supply a sizable chunk of U.S. needs for everything from electric cars to missile systems.

In practice, that could mean magnets for millions of new EVs or countless other gadgets and vehicles, all sourced domestically rather than from overseas rivals.

In essence, the government has said it will ensure the company gets at least $110 for every kilogram of key rare earth material it produces, even if the market price (largely set by Chinese suppliers) falls far below that.

To put that in perspective, $110 per kilo is roughly double the current going rate in China for those minerals. That kind of guarantee is unprecedented; it’s a built-in insurance policy against China flooding the market or slashing prices to undercut new competitors.

With an assured buyer at a premium price, MP Materials can expand production with confidence that it won’t go bust if Beijing tries to play hardball.

investornews.com
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