US Government Takes Major Stake in America’s Only Rare Earths Mine
The US government will become the largest shareholder in Mountain Pass, California’s rare earths mining operation—the country’s sole functioning facility for these critical materials. This unprecedented investment marks a strategic shift toward domestic production of elements essential for modern technology.
Rare earth elements power electric vehicles, wind turbines, smartphones, and defense systems. China currently dominates global rare earths production, controlling approximately 80% of the world’s supply chain. This dependency has raised national security concerns among US policymakers.
The Mountain Pass mine, operated by MP Materials Corp., produces rare earth concentrates but ships them to China for processing into finished materials. The government’s investment aims to establish complete domestic processing capabilities, reducing reliance on foreign suppliers.
Officials plan additional measures to strengthen the facility’s long-term viability. These steps include funding for processing infrastructure and technology development. The investment comes as demand for rare earths surges due to the clean energy transition and electric vehicle adoption.
The Biden administration has prioritized securing critical mineral supply chains through the Defense Production Act and other initiatives. This rare earths investment represents the most direct government intervention in the sector to date.
Mountain Pass previously operated under different ownership before shutting down in 2015. MP Materials restarted operations in 2018, but the facility still lacks complete processing capabilities that would eliminate dependence on Chinese refineries.
