MP
Not exactly the team-up Washington hoped for
For years, the whole point of the U.S. rare-earth push was simple: build a homegrown alternative to China’s stranglehold on critical minerals. Think less “let’s all win together,” more “please stop making us depend on Beijing for the stuff that powers EVs, smartphones, and fighter jets.”
Now two of the biggest U.S. winners in that strategy are apparently swinging at each other.
MP Materials says USA Rare Earth stole proprietary magnet technology after a former MP employee allegedly took the know-how over to the rival camp. USA Rare Earth says, in effect, nope, and that it’ll fight the claims hard.
Why this matters to your portfolio
This isn’t just spicy legal theater. It’s a reminder that the rare-earth buildout is still early, and the companies in the race are fighting for scarce talent, tech, contracts, and government backing at the same time.
A few things to watch:
- MP already has a landmark deal with the U.S. government, including a minority stake and price support.
- USA Rare Earth has been chasing conditional federal funding for its Texas mine and Oklahoma magnet facility.
- MP also has a magnet supply agreement with General Motors, showing how these projects can quickly turn into real commercial leverage.
Big picture
If the U.S. wants a mine-to-magnet supply chain that can actually stand on its own, it needs these companies to scale — not spend years litigating over who owns the recipe. For investors, that means the rare-earth story is still more “build it while fighting over it” than polished industrial comeback tale.