AMBP
Ardagh Metal Packaging S.A.
stock NYSE

**The Department of Defense has agreed to a deal with MP Materials ($MP) with multiple layers:**
* $400 Million preferred equity investment + convertible warrant making the DoD the largest shareholder in $MP
* Includes a $150 million loan to begin construction of a manufacturing facility
* 10 year offtake deal
* Price floor of magnets of $110/kg - DoD will purchase 100% of production
This deal is a landmark moment for companies involved in the potential supply chain for US critical minerals. No longer are we just hearing rumors and talk, this is putting pen to paper and is a declaration that critical minerals are going to be a defining issue over the next decade.
**National Security in Action:**
The DoD now owns the largest stake in a rare-earth producer, that is national strategy to secure the end step of a critical minerals supply chain. The MP deal is going to fund the development of the 10X magnet facility, and boost refining capacity. The logical next question for investors should be where do the raw minerals come from? Some will certainly come from the Mountain Pass mine that MP already owns, but there are going to be more to come. That swings the door wide open for miners.
The way I interpret this structure makes the blueprint clear. Feed the production and refinement facilities with domestically sourced raw materials. The logical next step in these deals is for deals to be struck in procurement and strategic offtake of materials. I wrote about The Metals Company last week, and they are seeing a rise in stock price from this deal as well, but to be clear this is an industry wide landmark deal.
* Magnet Producers like $MP benefit directly
* Rare Metals companies like $SGML, $TMC, $CCJ get a boost from increased domestic refinement and the potential for upstream deals to be made.
* Battery Recycling companies like $AMBP get a credibility boost and could be downstream investments in the future.
**Market Reaction**
* This deal was announced this morning before market open, at the time of writing shortly after market open $MP is up over 50%, $TMC and $SGML are up over 6%, and $AMBP is up marginally. This showcases the positive sentiment in the market.
* This feels like the beginning of a real supply chain bid, backed by the US government. Over the next decade we could see numerous winners in this space.
**TLDR**
* DoD just invested $400+ million into MP Materials to become its largest shareholder. This is a massive signal for critical mineral refinement and magnet manufacturing, it also lays the blueprint for upstream resource procurement deals. This is the beginning of a long-term critical minerals bid backed by the US government to secure the future of procurement and refinement of these minerals without international reliance.
Full Press Release: [https://www.businesswire.com/news/home/20250710526348/en/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U.S.-Rare-Earth-Magnet-Independence](https://www.businesswire.com/news/home/20250710526348/en/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U.S.-Rare-Earth-Magnet-Independence)

**The Department of Defense has agreed to a deal with MP Materials ($MP) with multiple layers:**
* $400 Million preferred equity investment + convertible warrant making the DoD the largest shareholder in $MP
* Includes a $150 million loan to begin construction of a manufacturing facility
* 10 year offtake deal
* Price floor of magnets of $110/kg - DoD will purchase 100% of production
This deal is a landmark moment for companies involved in the potential supply chain for US critical minerals. No longer are we just hearing rumors and talk, this is putting pen to paper and is a declaration that critical minerals are going to be a defining issue over the next decade.
**National Security in Action:**
The DoD now owns the largest stake in a rare-earth producer, that is national strategy to secure the end step of a critical minerals supply chain. The MP deal is going to fund the development of the 10X magnet facility, and boost refining capacity. The logical next question for investors should be where do the raw minerals come from? Some will certainly come from the Mountain Pass mine that MP already owns, but there are going to be more to come. That swings the door wide open for miners.
The way I interpret this structure makes the blueprint clear. Feed the production and refinement facilities with domestically sourced raw materials. The logical next step in these deals is for deals to be struck in procurement and strategic offtake of materials. I wrote about The Metals Company last week, and they are seeing a rise in stock price from this deal as well, but to be clear this is an industry wide landmark deal.
* Magnet Producers like $MP benefit directly
* Rare Metals companies like $SGML, $TMC, $CCJ get a boost from increased domestic refinement and the potential for upstream deals to be made.
* Battery Recycling companies like $AMBP get a credibility boost and could be downstream investments in the future.
**Market Reaction**
* This deal was announced this morning before market open, at the time of writing shortly after market open $MP is up over 50%, $TMC and $SGML are up over 6%, and $AMBP is up marginally. This showcases the positive sentiment in the market.
* This feels like the beginning of a real supply chain bid, backed by the US government. Over the next decade we could see numerous winners in this space.
**TLDR**
* DoD just invested $400+ million into MP Materials to become its largest shareholder. This is a massive signal for critical mineral refinement and magnet manufacturing, it also lays the blueprint for upstream resource procurement deals. This is the beginning of a long-term critical minerals bid backed by the US government to secure the future of procurement and refinement of these minerals without international reliance.
Full Press Release: [https://www.businesswire.com/news/home/20250710526348/en/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U.S.-Rare-Earth-Magnet-Independence](https://www.businesswire.com/news/home/20250710526348/en/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U.S.-Rare-Earth-Magnet-Independence)