MP Materials Corp. (MP) shares skyrocketed 37.13% in pre-market trading on Thursday following a series of groundbreaking announcements that promise to reshape the company's future and strengthen the U.S. rare earth supply chain.

The company revealed a transformational public-private partnership with the U.S. Department of Defense (DoD) aimed at accelerating U.S. rare earth magnet independence. This collaboration involves the construction of a new "10X" magnet manufacturing facility, which will significantly expand MP Materials' production capacity to 10,000 metric tons annually by 2028. The facility is designed to serve both defense and commercial sectors, reducing foreign dependency on critical rare earth materials.

Financial backing for this ambitious expansion comes from multiple sources. The company secured $1 billion in financing from JPMorgan and Goldman Sachs. Additionally, the DoD committed to a multi-billion-dollar investment, including the purchase of $400 million in convertible preferred stock, making it MP Materials' largest shareholder. Further bolstering the company's position, a 10-year NdPr (Neodymium-Praseodymium) price floor of $110/kg has been established, along with a magnet offtake agreement. These financial arrangements provide MP Materials with the stability and resources needed to execute its expansion plans and solidify its role as a key player in the U.S. rare earth industry.