Milbank LLP advised the lead arrangers in connection with MP Materials Corp.’s (NYSE: MP) (“MP Materials”) $1 billion committed financing in connection with its transformational public-private partnership with the US Department of Defense (“Department of Defense”) to support the development of the first fully integrated US supply chain for rare earth magnets.
MP Materials is the largest rare earths miner in the US and owns the only operational rare earth mine in the country.
With a multibillion-dollar package of investments and long-term commitments from the Department of Defense, MP Materials will construct its second domestic magnet manufacturing facility (the “10X Facility”) at a soon-to-be-chosen location to serve both defense and commercial customers. The new facility is expected to begin commissioning in 2028, and once completed, MP Materials’ total US rare earth magnet manufacturing capacity will reach an estimated 10,000 metric tons, vastly exceeding the current scale of US production.
“This transaction reflects the kind of consequential, future-focused work that defines our firm,” said Milbank Chairman Scott Edelman. “We’re honored to support our clients in a milestone financing that demonstrates how public-private collaboration can mobilize capital to advance national priorities — from industrial revitalization to supply chain resilience. It’s a privilege for our cross-disciplinary team to help move such transformative efforts forward.”
“We’re proud to support our clients in this landmark financing commitment that advances US energy and national security priorities,” said Corporate Finance and Securities partner and Practice Group Leader Jonathon Jackson. “This partnership underscores the growing importance of public-private collaboration in securing critical mineral supply chains and building resilient domestic infrastructure. Advising on a transaction of this scale and strategic importance reflects our deep experience at the intersection of industrial innovation, government partnership and capital markets.”
The Milbank team was led by Mr. Jackson and Global Leveraged Finance partner Christopher Kwan. The team also included Mr. Edelman and Litigation & Arbitration partner Andrew Leblanc, Financial Restructuring partner Matthew Brod and Global Project, Energy and Infrastructure Finance partners Jeffrey Leider, Sean O’Neill and Alec Borisoff. Support was provided by associates Julia Wennberg, Andy Lassman, Egzon Sulejmani, Andrew Mavers, Nicholas Castillo and Christelle Lobo.
