The Pentagon just made one of its biggest strategic investments in U.S. mining in recent history, and it’s worth a closer look for investors.
In a bold move to secure America’s supply of rare earth elements, the Department of Defense purchased a 15% equity stake in MP Materials (MP) — the only major rare earth mining company operating in the U.S. The deal includes a staggering $400 million in stock, plus a $150 million government loan.
So what’s going on here?
Rare Earths Are the New Gold Rush
Rare earth elements are essential to powering everything from:
- iPhones and EVs
- Drones and military jets
- Missile guidance systems and nuclear submarines
And 90% of the world’s rare earths? They come from China — the very country the U.S. is competing with in the global artificial intelligence (AI) and defense race.
That’s why this investment in MP stock isn’t just a mining play. It’s a national security move.
What Do They Know That You Don’t?
The U.S. Department of Defense plans to continue investing in critical minerals projects to ensure a domestic supply for weapons and many electronics.
Just 6 miles north of MP’s Mountain Pass mine lies a tiny, overlooked project run by Dateline Resources (DTREF), a microcap mining stock with both gold and rare earth exposure at its Colosseum project. Some analysts believe it may be geologically identical to MP’s massive mine — a “carbon copy,” in the words of insiders.
And with China recently hiking rare earth prices by 14%, retail traders and hedge funds are starting to take notice.
Apple’s $500 Million Bet
Apple (AAPL) also just inked a $500 million deal with MP Materials to secure its rare earth pipeline — making this not just a government-backed investment, but a corporate supply chain priority, too.
The Department of Defense has even introduced a price floor of $110/kg on rare earths, which could practically guarantee profits for approved suppliers.
How to Find the Next Big Rare Earth Winner
If this feels like a modern gold rush, it just might be. And Barchart has the tools to help you navigate it.
- Use Barchart’s ETF Screener to track rare earth ETFs like REMX or URNM.
- Filter Mining Stocks by Market Cap, RSI, and Trend Seeker® to find potential small-cap breakouts like DTR or Lynas Rare Earths (LYSDY).
- Watch our full YouTube video breaking down how to use Barchart screeners to catch big moves early:
Final Thought
The Pentagon doesn’t usually buy stock. When they do — especially in a critical industry — it’s time to pay attention.
Rare earths might not just power the next generation of defense tech… They could power your next winning trade, too.
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
