US Rare Earths Champion Says Pentagon Deal Not Easily Replicable

MP Materials Corp., the US rare earths producer that’s received government investment to support construction of domestic capacity, is warning the unprecedented move won’t be easily repeated for other companies.
The Pentagon agreed to a $400 million preferred equity investment in MP in July, not long after the US faced the threat of industrial shutdowns triggered by China’s curbs on exports of rare earth magnets. The deal — also including a supply agreement with a guaranteed floor price — was seen as a transformative moment for an industry plagued by cycles of boom and bust even before this year’s crisis.