Highlights

• MP Materials Corp. prices $650 million public offering to accelerate domestic rare earth manufacturing and reduce reliance on China.
• U.S. Department of Defense provides additional $400 million direct investment with long-term price and purchase guarantees.
• Company aims to vertically integrate rare earth metallization and magnet production through its 10X Facility project.

MP Materials Corp. (NYSE: MP) announced the pricing of an upsized $650 million public offering, selling 11.8 million shares at $55.00 per share. Proceeds are earmarked to accelerate construction of its “10X Facility”, pursue strategic growth, and support general corporate operations. The deal includes a 30-day option for underwriters to purchase an additional 1.77 million shares to cover over-allotments.

The offering is expected to close on July 18, 2025, subject to customary closing conditions. J.P. Morgan, Goldman Sachs, and Morgan Stanley are managing the transaction. MP Materials filed a shelf registration statement in February and expects the final prospectus to be published shortly via the SEC website.

According to the company, proceeds will help expand U.S.-based rare earth operations, including vertically integrated magnet production. The 10X Facility is a cornerstone of MP’s plan to re-shore rare earth metallization and magnet manufacturing, reducing reliance on China.

The capital raise follows the $400 million direct investment by the U.S. Department of Defense, announced earlier this month, which included a 10-year NdPr price floor guarantee and commitments for large-volume magnet purchases. Combined, these moves signal an aggressive shift toward domestic rare earth industrial sovereignty.

Unanswered Questions for Investors

• How will MP allocate the $650M across refining vs. magnet manufacturing, and on what timeline?
• What is the status of permitting and construction progress for the 10X Facility?
• Will existing shareholders face dilution risk if future capital raises are needed?
• Can MP compete with Chinese magnet producers on cost, even with price floors and federal backing?

Rare Earth Exchanges (REEx) notes that this public offering marks a rare convergence of government-backed industrial policy and capital markets strategy in the rare earth sector. While the Pentagon’s role remains controversial, MP Materials is now positioned as the best-capitalized Western rare earth enterprise, with a combined approximately $1 billion in recent support.

Retail investors should monitor construction milestones, offtake agreements, and operational readiness at the 10X site as indicators of forward momentum.  Discussions are happening at the REEx Forum.

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