{"id":7997,"date":"2026-03-26T04:36:31","date_gmt":"2026-03-26T04:36:31","guid":{"rendered":"https:\/\/sawahsolutions.com\/range\/defense-business-brief-pentagon-equity-stakes-ftw-hill-plus-a-bit-more\/"},"modified":"2026-03-26T04:36:32","modified_gmt":"2026-03-26T04:36:32","slug":"defense-business-brief-pentagon-equity-stakes-ftw-hill-plus-a-bit-more","status":"publish","type":"post","link":"https:\/\/sawahsolutions.com\/range\/defense-business-brief-pentagon-equity-stakes-ftw-hill-plus-a-bit-more\/","title":{"rendered":"Defense Business Brief: Pentagon equity stakes FTW?; Hill & Valley Forum takeaways; plus a bit more"},"content":{"rendered":"
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The Pentagon\u2019s equity stake in critical minerals company MP Materials seems to be paying off.\u00a0<\/p>\n

\u201cWe were on the verge of an economic shutdown\u201d last year as China restricted rare earth magnetics exports to the U.S. said James Litinsky, the CEO of MP Materials, during the Hill & Valley Forum on Tuesday.\u00a0\u00a0<\/p>\n

\u201cAt that time, we were beginning the process of our deal with the Pentagon\u2026we ultimately got that deal done in July, that public-private partnership. And so fast forward a year, and the good news is\u2026we’ve been really maniacal in getting this supply chain home.\u201d<\/p>\n

Last year, the Defense Department became MP Materials\u2019 largest shareholder with a $400 million stock buy. Less than a year later, the company has made progress bringing its rare earth magnetics supply chain to the U.S.\u2014though there\u2019s still more to do.<\/p>\n

The company is now producing \u201cat scale\u201d in its Fort Worth, Texas, factory and is looking to expand, Litinsky said. The goal is to speed up production tenfold as part of a $1.25 billion investment to build what they refer to as the 10X manufacturing campus.<\/p>\n

\u201cWe’ve done the vast amount of the long-lead procurement for our 10X magnetic factories we’re doing in partnership with the Department of War\u2026We’ve got a long way to go, but it is certainly night and day from an industry perspective,\u201d Litinsky said.\u00a0<\/p>\n

The Pentagon has made it clear that it will use every financial lever it can to improve defense supply chains, including equity stakes.\u00a0<\/p>\n

\u201cEven before the transformation strategy rolled out, I think the MP Materials deal was the first of several deals that we rolled out\u2026where we’re attempting to stabilize the demand signal over a sustained period of time so that corporations and investors [can] have the confidence to make an investment that will provide a return on that investment,\u201d Michael Duffey, the Pentagon\u2019s top weapons buyer said on stage Tuesday.\u00a0\u00a0<\/p>\n

So far, that strategy seems to be working for MP Materials, and for the plan to reshore critical minerals to the U.S.\u00a0<\/p>\n

\u201cWe are underway in solving it; we don\u2019t need to convince anyone anymore,\u201d Litinsky said.<\/p>\n

Welcome<\/strong><\/p>\n

You\u2019ve reached the Defense Business Brief, where we dig into what the Pentagon buys, who they\u2019re buying from, and why. Send along your tips, feedback, and song recommendations to lwilliams@defenseone.com<\/strong>. Check out the Defense Business Brief archive here<\/strong>, and tell your friends to subscribe<\/strong>!<\/p>\n

Hill + Valley vibes.<\/strong> The Hill & Valley Forum started as a large dinner event to bring policymakers and tech builders together. It now boasts more than 1,000 attendees. This year, the stunning but hard-to-drive-to Andrew W. Mellon auditorium was buzzing with lots of hurried men in dark suits. The aesthetics were gilded, the mood was collegial with fist bumps and bro hugs, and the panels were chill. Even the fireside chat with JPMorgan Chase CEO Jamie Dimon, who was a major draw, felt very relaxed. House Speaker Mike Johnson also dropped by to speak as a last-minute addition.\u00a0<\/p>\n

Takeaways:<\/strong> When asked which U.S. alliances needed more attention, Dimon said:\u201cI think the one we need to strengthen more is Europe,\u201d including through NATO and the overall economic relationship.\u00a0<\/p>\n