CALIFORNIA – The Office of Strategic Capital (OSC) announced, August 10, that it made its first direct loan to strengthen the U.S. industrial base and protect critical mineral supply chains.

OSC provided a $150 million loan to MP Materials to boost rare earth separation at its Mountain Pass facility in San Bernardino County under a July 2025 Department of Defense deal.

“MP will invest hundreds of millions of dollars at Mountain Pass, creating hundreds of new jobs there…” MP Materials posted on X.

The One Big Beautiful Bill Act, signed by President Donald Trump on July 4, 2025, provides $500 million to OSC, enabling up to $100 billion in loans for critical minerals.

“Through this loan, we are taking decisive action to restore our domestic critical minerals supply chain, revive our industrial base, and rebuild our military to achieve President Trump’s goal of peace through strength,” said Emil Michael, Under Secretary of Defense for Research and Engineering.

Rare earth minerals are used to make magnets and batteries

The Mountain Pass facility is the U.S.’s only operational rare earth mine, producing over 10% of the world’s supply.

It is situated near the unincorporated community of Mountain Pass, approximately 12 miles southwest of the California-Nevada border along Interstate 15.

In 1949, uranium prospectors in the Clark Mountain Range discovered bastnaesite, a rare earth-rich mineral that became the foundation of the Mountain Pass Mine. The mineral is now used to make magnets, polishing powders, catalysts, batteries, and advanced optics.

The company recently announced it struck a $500 million, multiyear agreement with Apple to produce rare earth magnets entirely from recycled materials – domestically. 

These magnets will be made at MP’s Fort Worth, Texas facility, using recycled rare earth feedstock processed at MP’s Mountain Pass facility.

Magnet production is set to start in 2027, eventually supporting millions of Apple devices.