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Investing.com -- MP Materials Corp. (NYSE:MP) stock rose 14% following a Bloomberg report that the Trump administration is developing a plan to use Cold War-era powers to prioritize and fund rare earth projects deemed critical to national security.
Officials are reportedly discussing utilizing the Defense Production Act to provide financing, loans, and other support for rare earth element-related projects, including mining, processing, and downstream technologies. The initiative aims to bolster the United States’ capability to build a domestic supply chain for these strategic materials.
MP Materials, as the sole domestic producer of rare earths in the US, would likely be a prime beneficiary of this initiative. According to the report, Deputy Defense Secretary Steve Feinberg is working to secure funding for the Nevada-based company, which has previously received millions in funding from the Defense Department.
The potential government support comes amid growing concerns about China’s dominance in the rare earths market and the strategic importance of these materials for defense applications and green technologies.
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