Chinese Investors Save U.S. Rare Earth Mine

In 2015, James Latinsky discovered the Mountain Pass rare earths mine, concerned over his hedge fund's $40 million investment in distressed bonds from the mine’s owner, Molycorp. Amazed by the site's potential and strategic importance, he decided to invest more despite having no mining experience. Rare earths, crucial for EVs, MRI machines, and other technologies, are predominantly mined and refined by China. Anticipating federal support, Latinsky secured $15 million from U.S. administrations and also leveraged Chinese investment, particularly from Shenghe Resources, to revive the mine. Winning the mine in a 2017 bankruptcy auction, he raised $50 million in presales to restart operations. Despite criticism about depending on Chinese support, Latinsky focused on selling at the highest price. This venture has made him worth an estimated $400 million, with MP Materials thriving and a new Fort Worth refining facility underway. Although market fluctuations have impacted stock prices, MP still maintains substantial market value. Latinsky’s strategic bet paid off, bringing significant returns and demonstrating the intricate ties between national interests and global economics.