US Defense Department sets $110/kg price floor for MP Materials’ neodymium-praseodymium products, boosting domestic supply chain efforts.
MP Materials (NYSE: MP) received a boost after the US Department of Defense established a $110 per kilogram price floor for its neodymium-praseodymium (NdPr) products. The agreement, part of a public-private partnership, aims to secure domestic supply chains for critical minerals amid China’s dominance in rare-earth processing.
The stock surged to $100 last year following government investment but has since fallen 42% from its 52-week high. China controls roughly 70% of rare-earth extraction and 90% of processing, leaving the US reliant on foreign supply chains for defense and clean-energy technologies.
MP Materials operates the only active rare-earth mining and processing site in the US, positioning it as a key player in reducing dependence on China.