On Sunday, the U.S. Department of Defense (DoD) announced its first direct loan through the Office of Strategic Capital (OSC), providing $150 million to MP Materials for upgrades to its rare earth processing facility in Mountain Pass.
The loan, part of a July 2025 agreement between DoD and MP Materials, will fund the addition of heavy rare earth separation capabilities to the company’s existing operations. MP Materials posted on X Monday that the investment will allow them to “create hundreds of new jobs there in the years ahead.”
MP Materials is the owner and operator of the only active rare earth mining and processing site in the United States. In January 2024, I had the opportunity to tour the Mountain Pass facility with my staff, seeing firsthand its critical role in the U.S. supply chain for rare earth minerals.
The $150 million loan builds on recent strategic investments in MP Materials. In July 2025, the Defense Department purchased $400 million in company shares, becoming a 15% shareholder. That same month, Apple committed $500 million to purchase American-made rare earth magnets produced at MP Materials. Apple will also partner with the company to establish a cutting-edge rare earth recycling line in Mountain Pass, and to develop new materials and processing technologies to enhance magnet performance.
Under Secretary of Defense for Research and Engineering Emil Michael called the deal “an incredible milestone,” noting that it supports efforts to restore the domestic critical minerals supply chain, rebuild our military and strengthen the U.S. industrial base.
Funding for the loan comes from the One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025. The legislation allocates $500 million in credit subsidy funding, enabling up to $100 billion in loans for critical minerals production and related industries.
I’m encouraged by these major investments in MP Materials and the future of rare earth production here in our region. Mountain Pass plays an essential role in strengthening America’s supply chain, creating high-quality jobs, and bolstering our national security. I look forward to seeing the remarkable progress MP Materials will make in the years ahead, and I sincerely thank them for choosing to invest right here in the First District.