The US Department of Defense (DoD) will become the largest shareholder in MP Materials (NYSE:MP) after agreeing to purchase US$400 million worth of preferred stock in the company, which owns and operates the only rare earth mine in the United States.

The rare earths producer said the proceeds from the investment will fund the expansion of its processing capabilities at the Mountain Pass mine in California and support the construction of a second magnet manufacturing facility in the US.

The materials mined and processed by MP are critical to the production of permanent magnets used in military systems, including the F-35 fighter jet, drones, and submarines.

The US has depended heavily on foreign imports for these materials — primarily from China, which accounted for about 70 percent of rare earth imports in 2023, according to the US Geological Survey.

In a press release issued Thursday (July 10), MP Materials described the agreement as a ‘transformational public-private partnership’ and said it would ‘dramatically accelerate the build-out of an end-to-end US rare earth magnet supply chain and reduce foreign dependency.’

The investment gives the Pentagon newly created preferred stock convertible into common shares, along with a 10-year warrant to buy additional stock at US$30.03 per share.

If fully converted and exercised, the DoD would own 15 percent of MP Materials, based on current share counts as of July 9. That would exceed the 8.61 percent stake held by CEO James Litinsky and the 8.27 percent stake held by BlackRock Fund Advisors.

Litinsky emphasized that the deal does not equate to government control of the company. “This is not a nationalization,” he said in an interview on CNBC. “We remain a thriving public company. We now have a great new partner in our economically largest shareholder, DoD, but we still control our company. We control our destiny. We’re shareholder driven.”

MP’s new magnet facility, called the “10X Facility,” will increase the company’s magnet manufacturing capacity to 10,000 metric tons annually once it begins commissioning in 2028. The exact location of the facility has not yet been disclosed.

The Pentagon has committed to purchasing 100 percent of the magnets produced at the 10X Facility for 10 years.

Additionally, the DoD will guarantee a minimum price of US$110 per kilogram for MP’s neodymium-praseodymium oxide (NdPr), a key material used in magnet production. If market prices fall below that threshold, the Pentagon will pay the difference quarterly.

In return, once the new facility is operational, the government will receive 30 percent of any upside above US$110 per kilogram.

To further support the buildout, MP Materials expects to receive a US$150 million loan from the Pentagon within 30 days to expand its heavy rare earth separation capabilities at Mountain Pass, the only active rare earth mine in the US.

It is also commissioning a magnetics facility in Texas, known as Independence, to bolster its downstream processing capabilities.

As the only domestic miner with vertically integrated capabilities and a clear path to rare earth magnet production at scale, MP Materials now sits at the center of the Biden-to-Trump era effort to bring critical mineral supply chains back to American soil.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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Statistics Canada released its June Labour Force Survey on Friday (July 11). The data indicated that 83,000 new jobs were added to the workforce, led by 34,000 new employees in the wholesale and retail trade category and a 17,000 worker rise in the healthcare and social assistance category.

In other positive news for the Canadian job market, the overall employment rate rose by 0.1 percent to 60.9 percent, while the unemployment rate declined by 0.1 percent to 6.9 percent.

The strong labour report came as a surprise to analysts who had been expecting employment rates to be flat month-over-month and the unemployment rate to increase to 7.1 percent. The June data signifies the first notable improvement in the job market since January and breaks a three-month rising trend in the unemployment rate.

Late on Thursday (June 10), US President Donald Trump threatened Canada with a 35 percent tariff on all exports starting on August 1. In his letter to Prime Minister Mark Carney, Trump said that Canada had imposed unfair trade practices, citing a 400 percent tariff on dairy products.

However, Canada has a trade deficit with the US when it comes to dairy. Imports in 2024 reached a record C$877 million, while exports of Canadian dairy totaled just C$358 million. Canada imposes a tariff rate quota, which limits the amount of duty-free dairy products that can enter Canada. Tariffs are only applied once the quota is exceeded.

Trump also pointed to continued flows of fentanyl into the US, saying, “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter.”

The president has used fentanyl as a reason for imposing tariffs against Canada since the start of his term, although the Canadian government is already taking action to secure the border further and the flow of the drug through the northern border remains a fraction of what it is at the southern border.

So far in the 2025 fiscal year, which started in October 2024, there have been 58 pounds of fentanyl seized at the Canada-US border. While the quantity of drugs seized coming from Canada has increased from 43 pounds the prior year, the number of events recorded has fallen to 38 from 67 in fiscal year 2024.

In December 2024, Canada announced C$1.3 billion in additional funding for increased security at the border, which included new and expanded detection capacity for illegal drugs. Between February and March, the Canada Border Services Agency conducted a one month drug-seizure operation focused on air, land and sea shipments named Operation Blizzard.

In May, the agency reported it seized 1.73 kilograms of fentanyl during the operation, 1.44 kilograms of which were en route to the United States. Additionally, 67.5 percent of the 2,600 seizures related to any drug ‘were of illegal narcotics coming to Canada from the United States,’ with only 17.5 percent going in the other direction.

Trump also announced on Tuesday (July 8) a 50 percent tariff on copper imports into the United States. The levies were imposed under section 232 of the Trade Expansion Act, which is designed to give the president the power to levy tariffs on imports deemed to be critical to national security.

According to the United States Geological Survey, Canada is the second largest exporter of refined copper to the United States behind Chile and top exporter of copper ore to the country.

The effects of the tariffs may take some time to work into the market. Still, British Columbia and Ontario will feel the impact as the two largest copper-producing provinces.

The copper price skyrocketed on the news to a fresh all-time high of US$5.72 per pound on the COMEX.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

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President Donald Trump’s new round of tariffs —this time targeting copper— has intensified concerns about rising costs across key sectors, including healthcare.

But despite significant price pressures on steel, aluminum, and now copper, all vital to medical device production, there is no indication that US hospitals are stockpiling equipment ahead of expected price hikes, according to recent findings from GlobalData.

Announced earlier this week, Trump’s 50 percent tariff on copper imports matches the doubled rates already in effect for steel and aluminum.

The White House has defended these actions, imposed under Section 232 of the Trade Expansion Act of 1962, as necessary to protect US national security and revive domestic manufacturing.

But with tariffs applied indiscriminately across all import sources —excluding only the United Kingdom on certain metals—concerns are mounting over the downstream impact, especially on industries reliant on foreign raw materials.

“Although these tariffs are likely to impact distribution and increase consumer costs, some facilities may not have the financial resources to buy devices in advance,” said Amy Paterson, a medical analyst at GlobalData.

“While some markets have seen an increase in spending, it does not appear that healthcare facilities have been stocking up on medical devices in preparation for potential price increases or supply chain disruptions.”

Steel and aluminum are critical materials in the production of surgical tools, implants, diagnostic machines, and hospital infrastructure. Copper, now under the same elevated tariff level, is widely used in imaging equipment, monitors, and wiring for medical devices. All told, the latest tariff decisions mean higher input costs across a range of essential equipment.

GlobalData’s US Healthcare Facility Invoicing Database, which tracks procurement activity across 56 medical device categories, shows no significant increase in healthcare spending between January and May 2025.

Even as May and June data continue to roll in, early signs suggest healthcare purchasing behavior remains steady, not preemptive.

This spending inertia comes despite broader signals that cost pressures on US healthcare providers may worsen. Unlike certain exemptions applied to pharmaceuticals or food products, the latest tariffs make no carveouts for medical equipment or life-saving devices.

This means that hospitals, who are already facing tight budgets and post-pandemic financial strain, may have to absorb higher equipment costs or pass them on to patients.

Taken together, the policy shifts and trade actions illustrate a broader Trump administration approach centered on cutting international dependencies, regardless of sector.

In metals, the administration argues, cheap imports from China and elsewhere have flooded global markets, putting US producers out of business and threatening industrial self-sufficiency.

The move to double tariffs on steel and aluminum reflects that ambition. Copper, added to the list this week, signals a continued hardline stance that could affect everything from defense manufacturing to consumer electronics.

The US imports more than half its aluminum and about one-third of its copper, much of it from countries like Canada and Chile.

By raising costs on these materials, the administration hopes to encourage domestic mining and refining. However, in the short term, US industries are bearing the brunt.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

A new analysis from the International Council on Clean Transportation (ICCT) has found that battery electric vehicles (BEVs) sold in Europe today produce 73 percent fewer greenhouse gas emissions over their lifetime than comparable gasoline-powered cars

The findings are based on an updated life-cycle assessment (LCA) of all major vehicle powertrain types, including internal combustion engine vehicles (ICEVs), hybrids (HEVs), plug-in hybrids (PHEVs), battery electric vehicles (BEVs), and hydrogen fuel cell electric vehicles (FCEVs).

The report accounts for emissions from vehicle and battery manufacturing, energy production, use and maintenance, while crucially considering changes in the EU’s electricity mix over a car’s operational life.

“Battery electric cars in Europe are getting cleaner faster than we expected and outperform all other technologies, including hybrids and plug-in hybrids,” said lead researcher Dr. Marta Negri. “This progress is largely due to the fast deployment of renewable electricity across the continent and the greater energy efficiency of battery electric cars.”

Further estimates show that BEVs sold this year emit an average of 63 grams (g) of CO₂-equivalent per kilometer (e/km)—down from 83 g CO₂e/km in the ICCT’s 2021 study, and far below the 235 g CO₂e/km estimated for gasoline ICEVs.

The improvement, the ICCT said, reflects rapid decarbonization of Europe’s grid and growing efficiency gains in battery and vehicle production.

When BEVs are powered solely by renewable electricity, their life-cycle emissions fall even further—to 52 g CO₂e/km, or 78 percent lower than those of gasoline cars.

In contrast, the ICCT found that other powertrain types show only limited progress. Plug-in hybrids emit about 30 percent less than gasoline cars over their lifetime, and hybrids achieve just a 20 percent reduction. Natural gas vehicles offer only a 13 percent cut, and diesel cars show emissions similar to gasoline models.

The report also assessed hydrogen fuel cell vehicles. When powered by hydrogen derived from renewable electricity—a technology not yet widely available—FCEVs can reduce emissions by 79 percent compared to gasoline cars.

However, nearly all hydrogen currently used in Europe is produced from natural gas, limiting the actual emission savings to around 26 percent.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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