Socialism advocates public ownership of means of supply and production of critical materials and goods along with price control. DoD tales first steps towards socialism.
The USA has only one mine that extracts rare earth elements. These elements are essential in the production of specialised magnets that are part of many high tech electrical systems. The Mountain Pass rare earth mine in southeastern California is operated by MP Materials. With China being the major global supplier of most of these rare earth elements the Department of Defense has taken the bold step of getting involved in the company. With the mine in California producing 15 of the 17 essential rare earth elements, it is viewed to have strategic significance.
The Pentagon took the step of becoming the largest shareholder in MP Materials on Thursday. The deal also included an investment package for the company which came to over $1 billion. This was made up of hundreds of millions of dollars in direct investments and loans,. Additionally there is a loan of $1 billion from JPMorgan Chase and Goldman Sachs.
Other aspects of the deal include the DoD agreeing to find a home for 100 percent of the magnets produced at the new 10X Facility, either in defense or commercial applications. So having control over extraction and purification as well as distribution. Truly the socialist dream. But it gets better.
Another part of the deal includes a price commitment from the DoD. This will have ensure that MP Materials gets at least $110 per kilogram for their NdPr oxide (a mix of neodymium and praseodymium oxides critical for high-performance rare-earth magnets).
On top of control of extraction, production and distribution there is also price control.
Of course with the DoD having control over which companies can receive materials from MP Materials there is the possibility that some companies that perhaps lack enthusiasm for Trump and MAGA might be disadvantaged. However only a cynical person would think that something like that would happen. Surely they would not do something as low down and sneaky as that. Would they?