America’s only rare earth producer gets a boost from Apple and Pentagon agreements

This news comes on the heels of last week’s announcement that the U.S. Defense Department agreed to invest $400 million in shares of the Las Vegas-based company, establish a floor for the price of key elements and ensure that all of the magnets made at a new plant in the first 10 years are purchased. Mukherjee, the analyst, says the Pentagon’s 10-year promise to guarantee a minimum price for the key elements of neodymium and praseodymium will guarantee stable revenue for MP Minerals and protect it from potential price cuts by Chinese producers that are subsidized by their government. The deals by MP Materials come as Beijing and Washington have agreed to walk back on their non-tariff measures: China is to grant export permits for rare earth magnets to the U.S., and the U.S. is easing export controls on chip design software and jet engines.

Author: Associated Press

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