Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%!
Rare-earth miner MP Materials (MP) soared during stock market trade on Thursday after announcing a multibillion dollar public-private partnership with the U.S. Department of Defense to "dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency."
The stock surged nearly 51% to 45.23 at the close for Thursday's stock market and kept edging higher early Friday. The move Thursday by MP Materials stock marks its highest level in around three years, dating back to early 2022.
This comes after MP Materials sock declined 3.7% to 30.03 on Wednesday, testing a 29.72 buy point.
MP owns and operates the only significant rare earths mine and processing facility in the U.S., just east of Los Angeles. MP is developing a rare earth magnet production facility in Fort Worth, Texas, which it expects to be producing finished neodymium-iron-boron magnets by the end of this year.
Under the agreement announced Thursday with the Defense Department, MP Materials will construct a second domestic magnet manufacturing facility "at a soon-to-be-chosen location to serve both defense and commercial customers."
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