Pentagon Invests $400M in MP Materials for 15% Stake, Guarantees Rare Earth Price Floor at $110/kg

According to Fount Media, the Pentagon invested $400 million in MP Materials on July 10, 2026, acquiring a 15% stake and becoming the company's largest shareholder. Under the Defense Production Act, the Department of Defense guarantees a floor price of $110 per kilogram for praseodymium-neodymium oxide over ten years, significantly above the then-market price of roughly $63 per kilogram. The agreement also requires MP Materials to increase rare earth magnet production tenfold.

The Pentagon is expanding this model across the supply chain, committing an additional $1.2 billion to strengthen domestic rare earth production. Energy Fuels will receive $725 million for a new rare earth separation facility, while Phoenix Tailings will obtain $500 million to establish a complete refining capacity from mining to magnet production by 2028. The Defense Logistics Agency has also launched a $1 billion strategic minerals acquisition program, targeting rare earth, tungsten, bismuth, and indium stockpiling with funding from a $2 billion national defense reserve allocation.