Summary
The US government is set to become the largest shareholder in the country's only working rare earths mine, located in Mountain Pass, California. This move is part of an agreement aimed at reducing reliance on Chinese imports of rare earth materials, which are crucial for modern technology like electric cars and wind turbines. The agreement includes a deal for the US government to ensure MP Materials, which owns the mine, receives a minimum price for certain rare earths over the next decade.
Key Facts
- The US government is becoming the biggest shareholder in the only active rare earths mine in the US.
- Rare earths are crucial for modern technology, like electric cars and wind turbines.
- China currently controls about 90% of the world's rare earth mining capacity.
- The US Department of Defense has a deal with MP Materials to reduce dependency on rare earth imports.
- The deal ensures MP Materials gets a minimum price for its neodymium and praseodymium output for 10 years.
- MP Materials plans to build a new facility in the US to process more of its mined materials.
- The US government will support this with a $400 million investment in new shares.
- Previously, a Chinese company was a major shareholder and sole customer for the mine's output, which was sent to China for processing.
