Why MP Materials (MP) Is Down 8.0% After Historic Pentagon Investment and Price Floor Announcement
- In late September 2025, the U.S. Department of Defense announced a major partnership with MP Materials, acquiring a 15% equity stake via a US$400 million preferred share issuance, providing a US$150 million low-interest loan, and establishing a price floor for rare earth magnet materials.
- This move marks one of the most robust federal efforts yet to secure a domestic supply chain for critical minerals, aligning national security interests with significant logistical and financial support for MP Materials’ expansion.
- We’ll explore how this government-backed deal with price guarantees impacts MP Materials’ risk profile and future earnings trajectory.
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