MP Materials unveiled a multibillion-dollar deal with the U.S. government on Thursday to boost output of rare earths and help loosen a stranglehold by top producer China on the minerals vital for military applications,

The US Department of Defense (DOD) is making a major investment in the California rare earth company MP Materials to catalyze the establishment of a US supply chain for rare earth magnets. US rare earth producers face a long road ahead, but industry observers say the DOD’s backing will be a significant push forward.

The Defense Department on Thursday became the largest shareholder in MP Materials, which owns the only rare earth mine in the U.S., amid a surge in demand for rare earths mined in the U.S. as China has curbed its rare earth exports amid a trade war with the U.S.