Pentagon's Strategic Leap into Rare Earth Minerals

The U.S. Department of Defense has announced a significant investment in critical minerals projects to diversify America's supply chain for building weapons and electronics, according to a defense official who spoke with Reuters this week.

Recently, the Pentagon finalized a multibillion-dollar agreement to become the largest shareholder in MP Materials, a leading rare earths producer, while also securing financial backstop measures for the company. This strategic investment aims to mitigate dependency on Chinese-controlled supply chains and set the stage for more U.S.-led mining ventures.

Breaking away from China's lower mining standards, the Pentagon's investments are channeled through the Defense Production Act and Office of Strategic Capital, reflecting a Cold War-era approach to revitalizing the U.S. industrial base for critical minerals and rare earth magnets.

(With inputs from agencies.)