Chinese Investment in US Mine Makes American Rich

James Latinsky's venture into the Mountain Pass rare earths mine began in 2015 when he was concerned about his hedge fund’s investment in distressed bonds issued by the mine's owner. Despite having no background in mining or rare earth chemistry, Latinsky recognized the site's industrial and strategic value, particularly its neodymium reserves used in high-tech applications. After the mine's owner filed for bankruptcy, Latinsky purchased the mine in 2017 through a risky yet calculated move, gaining financial backing from Chinese company Shanghi Resources. This raised eyebrows due to the partial Chinese government ownership of Shanghi, but Latinsky prioritized economic gains over geopolitical concerns. Federal support to the tune of $15 million from both the Trump and Biden administrations bolstered his efforts. Latinsky’s company, MP Materials, has thrived despite market price fluctuations, with the stock peaking at $56 per share and securing a significant market cap. Latinsky’s success has also been bolstered by winding down his hedge fund JHL Capital Group, which outperformed the S&P 500. While prices for rare earths like neodymium have since dropped, MP Materials remains a key player in the market, securing Latinsky a net worth of approximately $400 million.