China Rare Earth eyes indirect stake in MP Materials
Beijing’s consolidation drive could put a Chinese state company alongside the Pentagon on MP’s shareholder register.
Beijing is reportedly in discussions to acquire a stake in US rare earths producer MP Materials through Shenghe Resources, which would give China indirect ownership. The talks, initially reported by Reuters, involve Shenghe owning around 3% of MP Materials, the operator of the Mountain Pass mine in California. The Pentagon became the company's largest shareholder last year when it purchased $400 million of preferred stock and warrants.
The acquisition would raise questions about how the deal would affect Shenghe's overseas holdings, as well as whether Beijing's state-controlled company would have control over the US producer, which is crucial for various industries including defense, electronics, and renewable energy.
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