Your next iPhone could come from this mine. It also has billions in Pentagon contracts

A storied mine tucked in the California desert might be the nation’s ticket to reducing its dependence on foreign adversaries. And it could be the birthplace of your next iPhone, too.

At a time when the federal government is tightening its purse strings under the Trump administration, Pentagon agreements with one Las Vegas mining company are still firm.

Rep. Susie Lee, D-Nev., joined Las Vegas-based MP Materials at its Summerlin headquarters Monday to celebrate a slew of contracts with both Apple and the Department of Defense, representing billions in investment into the only operational rare earth mine and processing facility in North America.

“This is really changing the nature of technology and our supply chain in this country, and you all are leading the way,” Lee told a crowd of a few dozen employees. “It’s a very exciting day.”

Rare earth is a set of 17 minerals that have an incredible range of uses, from smartphones to heat-resistant military gear. Even though MP Materials’ Mountain Pass mine is alone in its production domestically, the minerals are not that rare, with deposits found in Nebraska, Wyoming and Montana.

Yet China has long dominated the market for the minerals. MP Materials had been shipping off its ore to China until April, when it onshored refining at Mountain Pass. That decision was, in part, due to Chinese tariffs on exports, the company said in a news release.

DOD to become primary shareholder

Today, the Mountain Pass mine that MP Materials bought eight years ago is producing more rare earth minerals than it has over its 75-year life, company spokesman Matt Sloustcher said.

“Prior to our acquisition of Mountain Pass, the site was on the brink of permanent failure,” Sloustcher said.

In the last year, the Defense Department has committed to purchasing $400 million in company shares, established a floor for the price of certain elements and committed to a contract in which it would buy all magnets created by a new facility in the first 10 years of production. One commitment — from Lee’s negotiations on a defense appropriations bill — is a $10 million down payment for its chloro-alkali wastewater plant that supports the mine, once a polluter in the region, in upholding its status as a “zero-discharge” operation.

Tech giant Apple signed a $500 million contract with the company, as well, committing to sourcing some of its magnets from MP Materials’ Texas recycling plant.

The Pentagon contracts make the department MP Materials’ largest shareholder, Sloustcher said.

“Securing America’s industrial base is something leaders on both sides of the aisle agree on,” the spokesman said. “It’s one of the few issues we agree on, and that consensus is very meaningful for us.”

How firm are the contracts?

In response to a question about cost-cutting measures throughout the federal government, Lee said the Defense Department is largely “isolated from those types of cuts.”

“Listen, we’re in a ramp-up with China right now,” Lee said. “The fact that we rely 100 percent on China for this type of rare earth element … we know how critical that is to our national defense. This is a priority.”

The particular element Lee was referring to is samarium, which produces magnets hardy enough to brave temperatures hot enough to melt lead without being stripped of magnetic force.

Those are necessary in motors, used in defense materials like missiles and fighter jets. Lockheed Martin, a major American defense and aerospace manufacturer, is the main consumer of samarium. Part of the Defense Department investment is a $150 million loan for samarium production, Sloustcher said.

Aside from the international implications of the mine, MP Materials expects the investments to be a boost to Southern Nevada’s economy, Lee said.

“Not only will we decrease our reliance on foreign nations, but we will also secure hundreds of jobs for Nevadans and produce magnets in an environmentally conscious manner,” Lee said. “We must make America’s rare earth resurgence a bipartisan priority.”

Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.