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9h ago

U.S. Defense Department Invests in MP Materials as China Eases Rare Earth Exports

The Pentagon’s investment underwrites a new magnet plant in response to Beijing’s export easing that fueled a 60% shipment jump in June

Visitors give commands to a robot at Nvidia's booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.)
Ren Limin, a worker at the Jinyuan Company's smelting workshop, prepares to pour the rare earth metal Lanthanum into a mould near the town of Damao in China's Inner Mongolia Autonomous Region October 31, 2010. REUTERS/David Gray/File Photo
Visitors walk in front of a CATL Naxtra battery is seen at a CATL booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.)
A visitor looks at Quantum-X800 infiniBand networking platform at the Nvidia booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.)

Overview

  • The U.S. Department of Defense acquired a 15% stake in MP Materials, becoming its largest shareholder and backing construction of a domestic rare earth magnet facility.
  • China’s rare earth shipments surged 60.3% in June after officials cleared a backlog of export licenses, reflecting a partial rollback of April’s trade curbs.
  • Beijing quietly issued its first 2025 mining and smelting quotas without public announcement, signaling continued tight control over domestic output.
  • China’s Ministry of State Security pledged to crack down on espionage and smuggling, accusing foreign agents of falsifying labels and transshipping restricted minerals.
  • The United States, European Union, Japan and India are advancing legislation, public-private partnerships and incentive schemes to build alternative rare earth supply chains.