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U.S. Defense Department invests $400M in domestic rare earth producer to reduce China reliance.
The U.S. Department of Defense has invested $400 million into MP Materials, the only domestic rare earth producer, acquiring a 15% stake.
This partnership aims to reduce U.S. dependence on China for rare earth minerals, crucial for technologies like smartphones and electric vehicles.
MP Materials will build a new magnet manufacturing facility, boosting its production capacity to 10,000 metric tons.
The deal includes a price floor of $110 per kilogram for neodymium-praseodymium, a rare earth element.
This move is part of efforts to secure domestic supply chains and reduce geopolitical risks.
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El Departamento de Defensa de EE.UU. invierte $ 400M en el productor doméstico de tierras raras para reducir la dependencia de China.