Strategic Summary
The U.S. is making significant strides in rare-earth sovereignty by injecting $400 million into MP Materials and structuring long-term purchasing and price protections for NdPr magnets. This effort is mirrored by Critical Metals securing a 10-year supply deal with U.S.-backed processing in Louisiana. Meanwhile, global actors like Greenland are gaining visibility as potential rare-earth supply sources.
Key Points
Pentagon Invests $400M in MP Materials
The Defense Department becomes MP's largest shareholder, providing a $150 million loan, establishing a price floor for NdPr, and guaranteeing output from its new magnet factory for the next decade.
https://apnews.com/article/edf8ff79ec97d7245f64afa9f9ac713a?utm_source=chatgpt.com Reuters+13AP News+13AP News+13Reuters+9The Washington Post+9Chemical & Engineering News+9Rare Earth Prices Surge After China Cutoff
NdPr prices spiked about 40%, to ~$88/kg, after MP Materials halted raw material exports to China, underscoring power shifts in supply dynamics.
https://www.reuters.com/sustainability/climate-energy/rare-earth-prices-hit-two-year-peak-after-mp-materials-stops-china-shipments-2025-08-26/ Reuters+1Greenland to U.S.: Heavy REE Supply Deal Inked
Critical Metals agreed to supply 10,000 metric tons of heavy rare-earth concentrate annually from Greenland’s Tanbreez project to a U.S. government-backed processing plant in Louisiana.
https://www.reuters.com/business/energy/critical-metals-signs-agreement-supply-rare-earth-us-government-funded-facility-2025-08-26/ The Australian+15Reuters+15MINING.COM+15
Why It Matters
Strategic Autonomy Solidified
The U.S. is actively building resilient rare-earth supply chains that are insulated from geopolitical shocks and price manipulation.Price Signals Reshape Markets
China’s pricing power is weakening, with global prices now trending upward due to operational and policy-driven supply changes.Supply Diversification Accelerates
Greenland’s increased role signals a new frontier in supply sourcing for heavy REEs, critical to long-term diversification strategies.
Watchlist Companies & Projects
MP Materials (NYSE: MP) — Central to U.S. rare-earth strategy; watch for 10X facility ramp-up and Idaho/Texas expansion.
https://apnews.com/article/7efe8b903b9668433d7c0a60be50b8c9 The Washington Post+11AP News+11AP News+11AP News+3Reuters+3The Australian+3ReutersAP News+6MarketWatch+6MP Materials+6Critical Metals (Greenland – Tanbreez) — Selected to deliver heavy rare earths to U.S. processing infrastructure.
https://www.reuters.com/business/energy/critical-metals-signs-agreement-supply-rare-earth-us-government-funded-facility-2025-08-26/ The Washington Post+15Reuters+15Reuters+15
Critical Minerals Spotlight
Neodymium–Praseodymium (NdPr) — Core to permanent magnets; price floor mechanisms ensure predictable ROIs for green energy and defense sectors.
Heavy Rare Earth Elements (e.g., Dysprosium, Terbium) — Vital in high-heat magnet applications; Greenland may become a strategic source under U.S. processing.
Action Points
Monitor MP Materials' output and pricing mechanics under the Pentagon floor deal.
Track launch and throughput of Louisiana processing facility for heavy rare earths.
Evaluate Greenland’s geopolitical potential as a strategic raw-material ally in the West.
This briefing is for informational purposes only and is not legal, investment, or policy advice. Information is believed accurate at time of publication. Sources are publicly available.