Strategic Move in Defence and AI Sectors
Mobix Labs, Inc., based in Irvine, California, has announced a non-binding Letter of Intent to acquire Special Project Delivery LLC (SPD), a U.S. firm focusing on rare earth elements and critical minerals.
This acquisition positions Mobix Labs to integrate deeper into strategic U.S. supply chains that support defence, national security, and AI infrastructure. The agreement aims to enhance Mobix’s role in the industrial sectors vital to military and technological advancements.
James Peterson, Chairman of Mobix Labs, stated, “Today, rare earths and critical minerals have become one of the defining competitive battlegrounds of the next decade. SPD is the right platform at exactly the right moment.”
Importance of Rare Earths
Rare earths are crucial for the production of military equipment such as the F-35 Lightning II, which uses approximately 418 kilograms of these materials. Similarly, Virginia-class nuclear submarines require about 4,500 kilograms each.
SPD was established in 2019 and has developed a U.S. critical-minerals platform aligned with federal initiatives like Project Vault, a $12 billion public-private partnership for resource resilience.
The acquisition is significant because China dominates much of the global rare earth mining and refining. According to industry and government sources, this has prompted NATO, AUKUS, and Five Eyes nations to prioritise independence from Chinese rare earths.
Paul Singarella, Co-Founder and CEO of SPD, remarked, “A combination with Mobix Labs would pair our platform directly with a publicly traded defence and dual-use technology company.”
The Letter of Intent with SPD is non-binding, with further due diligence and negotiation required before a definitive agreement is signed. The acquisition, if completed, could significantly impact the supply of rare earths to allied nations, amidst U.S. defence sourcing restrictions expected by 2027.
SPD’s work includes recovery of rare earth elements from underutilised domestic feedstock, like legacy U.S. coal ash, using extraction technologies validated by U.S. defense-research partners.
According to reports, tens of billions of dollars are already being deployed globally toward strategic critical-minerals infrastructure, with the potential to reach hundreds of billions over the coming decade.
Beginning in 2027, new U.S. Department of Defence restrictions on certain Chinese-origin rare earth magnet materials are expected to accelerate allied demand.
Last updated: 15 May 2026, 1:10 am
