U.S. Pentagons Invests in Rare-Earth Supply Chain

In early July 2025, the U.S. Department of Defense made a strategic $400 million investment in MP Materials, owner of the Mountain Pass mine—the only active rare-earth site in the country. This move aims to accelerate the development of domestic processing capacity for critical minerals essential to national defense, clean energy, and advanced manufacturing. With over 80% of rare-earth refining currently concentrated in China, the Pentagon’s backing signals a clear effort to de-risk strategic supply chains and build industrial resilience. As global competition for these resources intensifies, the U.S. is moving to ensure that its access to rare earths is not a geopolitical vulnerability.