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Trump Pentagon Push Shakes Rare Earth Investing and Challenges China’s Grip
Trump Pentagon Push Shakes Rare Earth Investing and Challenges China’s Grip
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BTCCSquare news:
President Donald TRUMP is rewriting the playbook on strategic investments. The Pentagon’s $400 million stake in MP Materials—America’s sole rare earth producer—marks a radical departure from free-market orthodoxy. This wartime-style intervention, unprecedented in peacetime, aims to break China’s stranglehold on minerals critical for EVs, defense systems, and consumer electronics.
Beijing’s export restrictions on rare earths have exposed U.S. supply chain frailties. The deal effectively subsidizes MP Materials, guaranteeing prices nearly double market rates—a move critics compare to China’s state capitalism. The investment signals a new era of government-backed industrial policy, with Ripple effects across tech and defense sectors.
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