A number of representatives of the mining industry and former US officials expressed concern about the decision of the country's Defense Ministry to invest $400 million in MP Materials, the country's only private producer of rare earth metals. Critics believe that such measures undermine market competition and create conditions under which one company receives unreasonable advantages.
According to the Financial Times, the deal with MP Materials was part of the White House's strategy to reduce dependence on supplies from China, the country that dominates the global rare earth resources market. The Department of Defense has also signed a contract with the company for the production of high-performance magnets necessary for the US defense industry.
The agreement is designed for ten years and involves not only investments, but also the provision of a loan of $150 million to MP Materials. It is expected that with the commissioning of the new plant, which is planned to be built in 2028, the United States will be able to produce up to 10,000 tons of rare earth magnets annually, reducing dependence on foreign supplies.
