Rare Earth Price Floors

Podcast: The Innovation Attorney Podcast · The Innovation Attorney

Opublikowano: 2026-10-11

Domestic rare earth processing becomes financeable for a venture funded startup when a price floor and Pentagon offtake arrive with federal debt, as the $500 million Phoenix Tailings commitment shows. The floor removes price risk. The offtake removes demand risk. A processing plant still costs several hundred million dollars before it ships a kilogram, and in 2026 the money that pays for it is coming from the government’s own lending office. The reference deal is the July 10, 2025 agreement with MP Materials. The Pentagon bought $400 million of convertible preferred stock, took a warrant at $30.03 per share, guaranteed $110 per kilogram on...