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2d ago

MP Materials Launches $650 Million Stock Offering to Expand U.S. Rare Earth Capacity

Underwriters are offering shares at $55 apiece to raise $650 million for U.S. processing, manufacturing capacity.

A view of the MP Materials rare earth open-pit mine in Mountain Pass, California, U.S. January 30, 2020. Picture taken January 30, 2020. REUTERS/Steve Marcus/ File Photo
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Overview

  • MP Materials commenced a $500 million underwritten public offering on July 16 with a 30-day option for underwriters to purchase up to 15% more shares.
  • Shares slipped about 6% in after-hours trading before stabilizing around $55–58 as the offering began on July 17.
  • The fundraising effort follows a $400 million Department of Defense equity investment and a $500 million Apple commitment for magnet supply and recycling.
  • Net proceeds will fund accelerated expansion of Mountain Pass rare earth processing and construction of a second U.S. magnet manufacturing plant.
  • These initiatives are designed to strengthen American rare earth supply chains and reduce dependence on Chinese sources.