Rare Earths Stocks Are Moving Higher Thursday: What's Going On?

The Metals Company Inc. (NASDAQ:TMC) and USA Rare Earth, Inc. (NASDAQ:USAR) shares are moving higher in sympathy with MP Materials Corp. (NYSE:MP) stock Thursday.

What To Know: Shares of rare earth companies are moving higher in sympathy with MP after the company announced it entered into a public-private partnership with the U.S. Department of Defense consisting of a multi-billion dollar package of investments and long-term commitments.

MP Materials said it will construct a second U.S. magnet manufacturing facility—dubbed the "10X Facility"—to serve defense and commercial customers, with commissioning expected in 2028. The partnership includes a 10-year price floor agreement and a 10-year magnet offtake commitment with the DoD.

The DoD has also agreed to purchase $400 million in convertible preferred stock and a warrant to buy additional shares, positioning the department to become MP's largest shareholder. The conversion and exercise price is set at $30.03 per share, with the transaction closing July 11.

"This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence," said James Litinsky, Founder, Chairman, and CEO of MP Materials. "We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication."

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Price Action: At the time of writing, The Metals Company shares are trading 12.2% higher at $7.03, USA Rare Earth shares are trading 17.2% higher at $11.48 and MP stock is trading 50.5% higher at $45.18, according to data from Benzinga Pro.

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