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The Defense Department will become the largest shareholder in Shakhtar rare land MP’s material after Agreed to buy 400 million dollars of its preferred stockThe company reported on Thursday.
MP Materials owns a single rare land in the US on Mountain Pass, California, about 60 miles outside the Las Vegas. Investment revenues to the Pentagon will be used to expand the rare land processing and magnet production, the company notes.
MP materials stocks were about 50% in the news.
Seldom Ministry of Defense.
The United States was almost completely dependent on foreign countries for rare land in 2023, and China is about 70% of imports, reports US Geological Service. Rare land was a major dispute in recent trade disputes between the US and China.
In April Direct investment in capital In critical mineral companies that would violate our dependence on China.
MP Materials CEO James Litinsky called Pentagon investment as a state partnership
“We understand that this partnership is ultimately on behalf of taxpayers and our national security, and this is of great responsibility for doing it correctly,” the Lithuanian investors said on Thursday morning. “Ensuring rare land and magnets in America is important for our economic and national security.”
Public private partnership
The Pentagon buys a recently created class of prevailing shares, convertibles in regular MP shares, except for a warrant that allows the US to buy additional conventional stocks. The Ministry of Defense’s investments are transformed at a fixed price of $ 30.03 per stock without cash dividends.
According to FACSET, which is engaged in Litinsky, and 8.27%, which are occupied by the Blackrock Fund Advisors Fack Fack Fack Fack Fack Fack Fack Fack Fack Fack Advisors, have attached stocks and a 5%MP in MP, almost twice as much as 8.61%.
MPs will create a second magnet production in the US to serve defense and chamber customers with the support of the Pentagon. It is expected that the facility, the location of which was not disclosed, will start commissioning in 2028 and will bring deputies of rare land production materials to 10,000 annual metric tons.
This production capacity is sufficient for “meaningful support for American and commercial needs,” Litinsky said.
The Pentagon has agreed to acquire 100% magnets made at a new facility, called 10 times, a decade after the factory to support protection needs and commercial market. JPMorgan and Goldman Sachs provide $ 1 billion to help finance the production facility.
The Pentagon also guarantees the price of $ 100 per kilogram for NDPR products, which are marketed by MP. NDPR is a rare land used to make permanent magnets.
If the market price is below $ 110 per kilogram, the United States will pay the MP’s material difference in quarterly cash, Litinsky said. The Pentagon, in turn, will receive 30% of the growth above $ 110 per kilogram after MP material Magnet is working, the CEO said.
The Defense Department agreed on a very tough agreement, Litinsky said. “Taxpayers are going to make a lot of money,” said the CEO.
MP’s materials also expect to receive a $ 150 million loan in 30 days from the Pentagon to expand their rare land separation capabilities on Mountain Pass.
