U.S. government contracts
In July 2020, the United States Department of Defense issued a preliminary contract to MP Materials intended to restore domestic heavy rare earth production and separation capabilities to the United States.[48][49] In November 2020, the United States Department of Defense awarded MP Materials $9.6 million as part of a government effort to increase domestic production of rare earth materials.[50][51]
On September 30, 2020, President Donald Trump issued an executive order targeting China's dominance of rare earth materials. In the executive order, he expressed concern for the heavy reliance of the US on China for 80 percent of rare earth materials. He reiterated the importance of producing and refining rare earth in the US and discussed various tariffs and government grants to rare earth material companies such as MP Materials.[52][53][54]
In 2021, MP Materials received $3 million in funding from the United States Department of Energy to design and study the feasibility of a system to produce rare earth oxides and metals from coal by-products in collaboration with the University of Kentucky.[16][55]
In February 2022, U.S. President Joe Biden announced at a press conference that the United States Department of Defense was investing $35 million into MP Materials as part of an effort to spur domestic rare earth production in the United States.[56][57] Biden said that this move was designed to reduce America's reliance on rare earth minerals imported from other countries.[58][59] The Biden administration said the federal funding is earmarked to assist the company to develop a new commercial facility for “heavy” rare earth mineral processing.[57]
On May 24, 2024, the Biden Administration announced a 25 percent tariff on rare earth magnets from China, set to take effect in 2026. This marks the first time that critical minerals, including rare earth magnets, have been specifically included in the tariffs.[60] Following the tariffs MP Materials put out a statement listing the tariffs. After the announcement, CEO James Litinsky attended an event with Biden at the White House.[61]
On July 10, 2025, MP Materials announced that the United States Department of Defense will become its largest shareholder.[62] The announcement came after the Pentagon agreed to buy $400 million of preferred stocks in the company.[63] As part of this multibillion-dollar deal, MP Materials will construct a new rare earth magnet facility called the "10X Facility." The initiative comes as the US looks to reduce reliance on foreign countries, particularly China, which currently supplies approximately 80% of the rare earth elements used in the US.[64]
