The Metals Company Inc. and USA Rare Earth, Inc. ( USAR ) shares are moving higher in sympathy with MP Materials Corp. ( MP ) stock Thursday.

What To Know: Shares of rare earth companies are moving higher in sympathy with MP after the company announced it entered into a public-private partnership with the U.S. Department of Defense consisting of a multi-billion dollar package of investments and long-term commitments.

MP Materials ( MP ) said it will construct a second U.S. magnet manufacturing facility—dubbed the "10X Facility"—to serve defense and commercial customers, with commissioning expected in 2028. The partnership includes a 10-year price floor agreement and a 10-year magnet offtake commitment with the DoD.

The DoD has also agreed to purchase $400 million in convertible preferred stock and a warrant to buy additional shares, positioning the department to become MP's largest shareholder. The conversion and exercise price is set at $30.03 per share, with the transaction closing July 11.

"This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence," said James Litinsky, Founder, Chairman, and CEO of MP Materials ( MP ). "We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication."

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Price Action: At the time of writing, The Metals Company shares are trading 12.2% higher at $7.03, USA Rare Earth ( USAR ) shares are trading 17.2% higher at $11.48 and MP stock is trading 50.5% higher at $45.18, according to data from Benzinga Pro.

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