Pentagon's Rare Earth Gambit: Securing America's Critical Mineral Supply

In a strategic move to bolster national security, the U.S. Department of Defense is strengthening ties with the rare earth industry. This comes as part of a broader initiative to ensure a stable supply of critical minerals, which are vital across various sectors of the economy.

The Pentagon has recently secured a multibillion-dollar deal, positioning itself as the largest shareholder in MP Materials. Additionally, the U.S. military has implemented financial measures to support the company, reflecting its willingness to share risks associated with critical mineral projects.

This initiative is conducted under the auspices of a Cold War-era law, the Defense Production Act, and through the Office of Strategic Capital. The goal is to mitigate reliance on China by establishing a resilient domestic supply chain for rare earths.

(With inputs from agencies.)