As the U.S. invests in rare earths, a mine that was broke and underwater 10 years ago is now a game-changer
CBS News • • business
Key Points:
- MP Materials CEO James Litinsky has transformed the Mountain Pass rare earth mine into a key player in U.S. national security by controlling the entire rare earth magnet supply chain, from mining to manufacturing.
- China currently dominates over 90% of the global rare earth magnet market and has used this dominance as a geopolitical weapon, restricting exports and driving down prices to undercut competitors.
- The U.S. government, recognizing the strategic vulnerability, invested $400 million in MP Materials and took a 15% ownership stake to accelerate domestic rare earth production and ensure a stable supply chain independent of China.
- MP Materials has scaled up production significantly since 2017, refining rare earth elements to 99.9% purity and building a magnet factory in Texas, with plans for a larger facility to meet critical national needs by 2028.
- The Pentagon's support includes a guaranteed 10-year price floor for rare earth oxide, protecting MP Materials from market fluctuations caused by China's potential price dumping, marking a pragmatic approach to counter China's monopoly.
