NYSE-listed MP Materials on Thursday announced a landmark public-private partnership with the US Department of Defense (DoD), securing a multibillion-dollar package aimed at accelerating domestic rare earth magnet production and reducing the US' reliance on foreign supply.

As part of the agreement, the DoD will provide financial support and long-term purchase commitments for MP Materials’ planned “10X Facility” – a second magnet manufacturing plant expected to begin commissioning in 2028. Once operational, MP’s total US production capacity is expected to be 10 000 metric tons a year of magnets, a scale seen as critical for military and commercial technologies.

“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” said MP Materials founder, chairperson and CEO James Litinsky.

“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.”

The deal includes a ten-year offtake agreement for 100% of the 10X Facility’s magnet output and a price floor of $110/kg for neodymium-praseodymium (NdPr) oxide, which secures cash flow and reduces exposure to volatile global markets. The Pentagon will also invest $400-million in preferred equity and receive a warrant to purchase additional shares, positioning the DoD to become MP Materials' largest shareholder.

On a fully converted and exercised basis, the DoD's equity stake will represent about 15% of MP Materials' outstanding shares as of July 9.

JPMorgan Chase Funding and Goldman Sachs Bank USA have committed $1-billion in construction financing, and the company expects to receive a $150-million DoD loan within 30 days to support its heavy rare earth separation expansion at Mountain Pass.

The Mountain Pass site, located in California, is the only scaled rare earths mine and processor in North America. MP is also commissioning its Independence magnetics facility in Texas to anchor its downstream operations. The 10X project is intended to further close the loop between extraction, separation, and finished magnet production.

“This strategic partnership builds on MP Materials’ operational foundation to catalyse domestic production, strengthen industrial resilience, and secure critical supply chains for high-growth industries and future dual use applications,” the company said in a statement.

Shares of MP Materials shot up 45% to $43.78 apiece in early trading following the announcement.