In a unique event, the United States government, specifically the Department of Defense (DOD), bought a 15% participation in the largest rare land mining in the country, MP Materials Corp (NYSE :). The DOD is buying $ 400 million of preferential MP preferred shares. The transaction will cause the Government MP shareholder to. The next appointment about the benefits of the association to the country is from the CEO of MP James Litinsky, courtesy of Forbes:
“This association will drastically accelerate the manufacturing capabilities of rare land magnets in the United States, ensuring a safe and resistant supply chain for our national and critical defense industries.”
The association between DOD and MP aims to accelerate the development of the Nation’s rare magnet supply chain and build a new magnetic installation “10x”. Specifically, its objective is to significantly expand American production of Neodimio-Hierro-Coron (NDFEB) magnets, which are critical for military and commercial applications, such as F-35 aircraft, electric vehicles and wind turbines. Currently, China produces almost 90% of NDFEB magnets.
The benefits of transaction for the country include the strategic independence of critical minerals and economic growth. However, the Association presents the Government in terms of market valuations and financial risk if MP cannot meet expectations. As shown, MP shares increased approximately 50% in the news.
What to see today
Earnings
Economy
- There are no economic reports today
Next week
The profit season begins seriously this week with the largest banks and the smallest regional banks that report on Tuesdays and Wednesdays. Netflix (Nasdaq 🙂 will report on Thursday, with American Express Company (Nyse 🙂 and Friday.
Tuesday and Wednesday reports will be very useful to appreciate how rates are affecting inflation. Until now, there has been an insignificant effect. However, the June reports will completely capture a period in which the tariffs were enforced. If the data continues to be weak, we suspect that it will become more misleading. However, the highest inflation data than expected can allow them to continue postponing. It is also noteworthy that this week will be Thursday.
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