AsianFin -- The U.S. Department of Defense is investing $400 million in MP Materials through newly issued preferred shares, becoming the company’s largest shareholder and triggering a 60% surge in its stock price.

The preferred shares are convertible into common stock, and the Pentagon is also acquiring a warrant to purchase additional common shares in the future. As of July 9, the investment would give the Defense Department an estimated 15% stake in MP Materials.

The move comes after Interior Secretary Doug Burgum called for direct government investment in critical mineral producers to reduce reliance on Chinese imports.

“We have to get back in the game,” Burgum said. “It’s not just ‘drill, baby, drill.’ It’s ‘mine, baby, mine.’ If we don’t do that as a country, we’ll be at the mercy of others who control our supply chains.”