# MP Materials and the US Defense Department agree a $110/kg NdPr price floor, $400M equity and heavy rare-earth loan

Canonical page: https://technooptimist.io/stories/mp-materials-and-the-us-defense-department-agree-a-110-kg-ndpr-price-18387dc6
Date: 10 Jul 2025
About: [MP Materials](https://technooptimist.io/companies/mp-materials.md) · [Mountain Pass mine and separation](https://technooptimist.io/materials/mountain-pass.md)
Original source: https://investors.mpmaterials.com/investor-news/news-details/2025/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U-S--Rare-Earth-Magnet-Independence

The Defense Department agreed to a 10-year price floor of $110 per kilogram for MP's NdPr products, a $400 million preferred stock purchase that would make it MP's largest shareholder, and a $150 million loan to expand heavy rare-earth separation at Mountain Pass. It also guaranteed buyers for all magnets from a second US magnet plant, the 10X Facility, for 10 years.

## Key facts

- Price floor: $110/kg NdPr for 10 years, whether stockpiled or sold.
- DoD stake: about 15% of common shares on an as-converted basis.
- $150M loan to add heavy rare-earth separation at Mountain Pass.
- 10X Facility commissioning expected from 2028; US magnet capacity ~10,000 t.

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