James Litinsky made a $100mn bet in 2015 on the distressed debt of a flailing natural resources company.
His wager has now paid off spectacularly, after Donald Trump’s administration thrust the group to the centre of the US strategy to counter China’s dominance in critical minerals. Shares in Litinsky’s MP Materials surged 48 per cent last week after the Pentagon agreed to take a $400mn, 15 per cent equity stake in MP Materials and buy its output for 10 years at double the current market price. The rally handed Litinsky a $200mn boost to his personal wealth, and brought the group’s stock to a three-year high.
The unusual arrangement signals the Trump administration’s commitment to restoring domestic supply chains for 17 elements crucial to defence and national security technologies — and a new approach to bring business sensibility to the work of defending US interests.