by Daniel Brouse
July 10, 2025
The U.S. Department of Defense has begun taking over a private company, MP Materials, in a move that raises red flags for anyone concerned about the creeping merger of state and corporate power. While the government claims to champion “free markets” and “privatization,” it is now directly intervening to pick stocks, winners, and losers—contradicting its own stated economic values.
The Pentagon is partnering with MP Materials to secure the domestic supply of rare earth magnets, essential for advanced weapons, electric vehicles, and clean energy technologies. On the surface, this may appear to be a national security measure to counter China’s near-monopoly on rare earths. However, it also signals a significant shift: the U.S. government is now moving to control key industries under the guise of “partnership.” Shares of the stock skyrocketed 50% on the news.
Environmental Impact: A Hidden Cost of “Security”
One of the gravest concerns is the environmental devastation caused by rare earth mining and processing. The reason there is so little rare earth mining in the U.S. today is precisely because it is extremely toxic and deadly, leaving behind giant hazardous waste zones and radioactive tailings that poison water, soil, and air. The processing pools used to extract rare earth elements generate massive amounts of waste, including radioactive elements and heavy metals, creating long-term contamination risks for surrounding communities and ecosystems. By ramping up domestic rare earth production under the banner of “national security,” the U.S. risks creating sacrifice zones on its own soil, prioritizing military and economic aims over public health and environmental safety.
Why This Matters:
State Control Disguised as National Security:
While ensuring supply chains for critical materials is important, the mechanism here is effectively a nationalization of production without calling it that. This blurs the line between private enterprise and state control.
Distortion of Free Markets:
By injecting government capital, guarantees, and direction into specific companies, the Pentagon is picking winners and losers, undermining competition, and creating an uneven playing field.
Contradictions in U.S. Economic Policy:
The same government that lectures other nations about privatization and free-market reforms is now orchestrating the domestic economy to suit geopolitical goals. This hypocrisy undermines trust in U.S. policy abroad and at home.
Militarization of the Economy:
Securing rare earths for weapons and defense applications further expands the military-industrial complex, channeling public resources into war readiness rather than prioritizing civilian infrastructure, climate adaptation, or social needs.
Environmental Impact:
An example of the devastating consequences of rare earth mining can be witnessed in China, which currently dominates global rare earth mining and processing. Entire villages have become uninhabitable due to toxic waste, radioactive runoff, and air and water contamination caused by processing operations. Black sludge-filled lakes, poisoned farmland, and cancer clusters have become common in these regions, demonstrating the catastrophic cost of rare earth extraction when environmental protections are weak or ignored. If the U.S. pushes forward with domestic rare earth production without strict environmental safeguards, it risks replicating these sacrifice zones within its own borders, harming communities and ecosystems in the name of “security” and economic competition.
A Question for Policymakers:
If “privatization” only applies when it benefits corporate profits, but “nationalization” becomes acceptable when it serves military interests, what kind of economy are we really building?