S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com -- MP Materials Corp (NYSE:MP) stock surged 13.9% in regular trading and added another 6.9% after hours following a report from Bloomberg that the Trump administration is developing a plan to prioritize and fund rare earth projects deemed critical to national security.
Officials are discussing the use of the Defense Production Act to provide financing, loans, and other support for rare earth element-related projects, according to Bloomberg, citing people familiar with the matter. The initiative aims to strengthen the domestic supply chain for these critical minerals, though a specific course of action and timeline have not yet been finalized.
MP Materials, as the only domestic producer of rare earths in the United States, stands to benefit significantly from this potential government support. Deputy Defense Secretary Steve Feinberg is reportedly working to secure funding for the Nevada-based company, which has previously received millions in Defense Department funding.
Rare earth elements are crucial components in various high-tech applications, including military equipment, electric vehicles, and renewable energy technologies. The U.S. has been working to reduce its dependence on foreign sources, particularly China, which dominates the global rare earths market.
The Defense Production Act, a Cold War-era law, gives the president broad authority to direct industrial production for national defense purposes. Using this authority would signal the administration’s view that rare earth minerals represent a strategic priority for national security.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.