Key Takeaways:
Mobix Labs Inc. is moving to acquire a U.S. rare earth infrastructure firm, aligning with a national push to secure strategic materials essential for advanced defense platforms.
"Today, rare earths and critical minerals have become one of the defining competitive battlegrounds of the next decade," James Peterson, Chairman of the Board of Mobix Labs, said in a statement.
The proposed acquisition of Special Project Delivery LLC comes as U.S. defense platforms show significant rare earth consumption, with an estimated 418 kilograms used in each F-35 jet and 4,500 kilograms in each Virginia-class submarine. SPD's work includes recovering these elements from U.S. coal ash feedstock, a technology validated by defense-research partners.
The deal positions Mobix inside a major industrial policy shift, underscored by the April 2026 activation of the Defense Production Act and a $100 billion allocation by the Pentagon for critical minerals, as new DoD sourcing restrictions on Chinese materials are set to begin in 2027.
The proposed combination of Mobix, a public defense technology supplier, with SPD's resource platform occurs as Washington deploys significant financial power to rebuild domestic supply chains. Following a January 2025 National Energy Emergency declaration, the executive branch invoked the Defense Production Act in April 2026, specifically targeting the expansion of minerals required for grid stability and defense infrastructure.
SPD is aligned with these federal initiatives, including the $12 billion Project Vault partnership for resource resilience. The federal government's strategy includes deploying $200 billion in loan authority from the Department of Energy and a separate $100 billion from the Pentagon's Office of Strategic Capital to de-risk private investment in domestic critical minerals production. This acquisition would place Mobix and SPD directly in the path of that capital deployment.
The strategic importance of the acquisition target is rooted in the material needs of modern military hardware. According to widely cited government and industry sources, there is no F-35 Lightning II, Virginia-class submarine, or Arleigh Burke-class destroyer without a stable supply of rare earth elements. These materials are fundamental to advanced radar, missile guidance, and AI data center components.
"SPD was built to onshore the materials, technologies, and infrastructure defining national sovereignty in the 21st century," said Paul Singarella, Co-Founder and CEO of SPD. He noted a combination with Mobix would pair his platform "directly with a publicly traded defense and dual-use technology company already operating inside the defense and aerospace ecosystems our materials are built to supply."
The letter of intent is non-binding and the transaction's completion is subject to due diligence and definitive agreements. Financial terms of the proposed deal were not disclosed.
This article is for informational purposes only and does not constitute investment advice.
