Overview

• The Department of Defense agreed to purchase $400 million of convertible preferred stock and a warrant, giving it about a 15 percent stake in MP Materials.
• MP Materials operates the only active rare earth mine in the U.S. at Mountain Pass, California, supplying critical elements like neodymium and praseodymium.
• A ten-year contract obligates the Pentagon to buy 100 percent of magnets from MP Materials’ forthcoming 10X facility and supports a $110 per kilogram floor on NdPr products.
• MP Materials secured a $1 billion financing commitment from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA to build and develop its second domestic magnet plant.
• The company expects to receive a $150 million Department of Defense loan within 30 days to expand heavy rare earth separation capabilities at Mountain Pass.