Defense.gov – August 10, 2025
Office of Strategic Capital Finalizes First Loan to MP Materials, Bolstering Critical Materials Supply Chain
The Department of Defense’s Office of Strategic Capital (OSC) has announced a significant milestone with the finalization of its first loan to MP Materials, a company dedicated to the mining and processing of rare earth elements. This landmark agreement, facilitated through a Department of Defense (DoD) agreement, underscores a strategic initiative to strengthen the domestic supply chain for critical materials essential to national security.
The loan signifies a pivotal moment in the ongoing efforts by the OSC to leverage private sector innovation and capital to secure vital resources. Rare earth elements, a group of 17 metals, are indispensable components in a wide array of modern technologies, including advanced defense systems, renewable energy technologies such as wind turbines and electric vehicles, and sophisticated electronics. The reliable and secure access to these materials is paramount for maintaining a technological edge and ensuring robust national defense capabilities.
MP Materials operates the Mountain Pass facility in California, which is the only integrated rare earth mining and processing site in North America. This facility plays a crucial role in the global supply chain, and the OSC’s investment is expected to further enhance its capacity and operational efficiency. By supporting MP Materials, the DoD aims to reduce reliance on foreign sources for these critical materials, thereby mitigating geopolitical risks and bolstering economic resilience.
The OSC, established to identify and invest in projects that advance U.S. strategic interests, particularly in critical and emerging technologies, views this loan as a foundational step in its broader mission. The office’s mandate includes fostering domestic production capabilities and ensuring the security of supply chains that are vital for national defense and economic prosperity.
This collaboration with MP Materials is a clear demonstration of the DoD’s commitment to fostering a more secure and self-sufficient industrial base. By providing financial backing through this loan, the OSC is not only supporting a key domestic producer but also signaling a broader strategic direction towards de-risking and strengthening the supply of critical minerals. The successful implementation of this agreement is anticipated to serve as a model for future investments aimed at securing other essential materials and technologies.
The announcement highlights a proactive approach by the Department of Defense to address the vulnerabilities inherent in global supply chains, particularly for materials that are foundational to both technological advancement and national security. This strategic investment is expected to have a positive ripple effect, encouraging further domestic investment and innovation in the critical minerals sector.
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Defense.gov published ‘Office of Strategic Capital Announces First Loan Through DoD Agreement With MP Materials to Secure Critical Materials Supply Chain’ at 2025-08 -10 14:09. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.