Expert explains rare earth elements and DoD deal

The U.S. Department of Defense signed a 10-year deal with MP Materials to support domestic rare earth element production.

• Main action: The U.S. Department of Defense entered a 10-year deal with MP Materials (the only U.S. rare earth mine) as a policy intervention and direct investment to provide price stability for domestic rare earth production; MP Materials primarily produces neodymium-praseodymium oxide (NdPr) used in permanent magnets.
• Background/details: The U.S. currently imports up to 82 percent of rare earth elements (primarily from China); opening a new mine can take 17 or more years due to engineering, permitting, financing, and feasibility study requirements; past U.S. support included loan guarantees, R&D, and feasibility studies.