Pentagon Strengthens Ties with Rare Earths Producers

The U.S. Department of Defense announced plans to work closely with rare earth companies, ensuring a diverse and secure supply of these crucial minerals in the United States. A defense official shared this strategy with Reuters, emphasizing the significance of such minerals across various economic sectors.

In a significant move last week, the Pentagon entered a multibillion-dollar agreement, becoming the largest shareholder in MP Materials, a leading rare earths producer. This partnership underscores the importance the Defense Department places on securing mineral resources needed for national defense and technological advancements.

Additionally, the Pentagon has agreed to several financial backstop measures for MP Materials. These steps aim to fortify the company's operations and strengthen the national supply chain, showcasing a proactive approach in safeguarding key mineral resources critical to the nation's economy and security.

(With inputs from agencies.)