How the DoD’s Cash Surge Is Powering a New Era of Defense Innovation

The U.S. Department of Defense (DoD) is throwing its financial weight around in 2025, unleashing a spending spree that’s lighting up the markets and positioning companies like Draganfly Inc. (NASDAQ: DPRO | CSE: DPRO), MP Materials Corp. (NYSE: MP), Rare Resource Recycling Inc., Military Metals Corp. (OTCQB: MILIF | CSE: MILI), and Perpetua Resources Corp. (NASDAQ: PPTA) as key players in America’s quest for supply chain supremacy. This isn’t just about doling out dollars—it’s a strategic power play to secure critical minerals and cutting-edge tech, countering China’s stranglehold on global resources. With a confident nod to national security and a sly wink at economic opportunity, the Pentagon is betting big on these firms to reshape the defense landscape. Let’s unpack this high-stakes gambit, where the DoD’s checkbook is rewriting the rules of the game.

Kicking things off with a high-flying win, Draganfly Inc. (NASDAQ: DPRO | CSE: DPRO) snagged a coveted DoD contract on July 16, 2025, to supply its Commander3 XL UAV for advanced reconnaissance missions. The Commander 3XL recently demonstrated a 100% success rate during the U.S. Army’s Sustainment Modernization Experiment 2025 (SMEX25), successfully deploying and recharging tactical resupply pods as part of TB2 Aerospace’s Drone Recharging Operational Payload System (DROPS). This integration highlights Draganfly’s growing role in autonomous logistics, proving its technology can operate reliably in demanding military scenarios with minimal human intervention.

The Commander 3XL’s performance during SMEX25 garnered praise from defense evaluators and underscores the platform’s potential to revolutionize tactical resupply by streamlining payload delivery in contested environments. This system-agnostic payload capability further strengthens Draganfly’s position as a versatile partner in next-generation military drone operations.

In addition to operational progress, Draganfly recently completed a $13.75 million public offering, providing capital to accelerate product development and market expansion. The offering included units with attached warrants exercisable over five years, indicating investor confidence in Draganfly’s growth trajectory amid expanding DoD interest.

Together, these developments position Draganfly not just as a drone manufacturer but as a growing player in autonomous military logistics, combining proven field performance with a solid financial footing to pursue broader defense opportunities.

Then there’s MP Materials Corp. (NYSE: MP), which landed a jaw-dropping deal that’s got Wall Street buzzing louder than a rare earth magnet factory. On July 10, 2025, the DoD inked a transformational partnership, investing $400 million in preferred stock to become the largest shareholder of MP Materials (NYSE: MP), with a 15% stake. Add a $150 million loan to expand its Mountain Pass mine in California—the only operational rare earth mine in the U.S.—and a 10-year price floor of $110 per kilogram for neodymium-praseodymium (NdPr), and you’ve got a deal that screams strategic dominance. With a new 10,000-ton-per-year magnet facility set to launch in 2028, MP Materials (NYSE: MP) is poised to break China’s 90% grip on rare earth processing, delivering a knockout punch to Beijing’s export restrictions.

Not to be outdone, Rare Resource Recycling Inc. secured a $5.1 million DoD award on January 16, 2025, to extract rare earth elements from recycled electronics. This under-the-radar company is turning e-waste into a national security asset, proving the Pentagon’s thinking outside the box. By transforming discarded tech into critical materials for jets and missiles, Rare Resource Recycling Inc. is carving out a niche that’s as sustainable as it is strategic.

Military Metals Corp. (OTCQB: MILIF | CSE: MILI) has not yet secured a 2025 DoD contract, but its focus on antimony—a mineral essential for ammunition, infrared optics, and flame retardants—positions it as a strong candidate for Pentagon interest. With three active projects spanning Nevada, Nova Scotia, and Slovakia, the company is developing one of the few pure-play antimony pipelines within NATO-friendly jurisdictions.

At the Last Chance project in Nevada, recent sampling returned grades up to 11.61% stibnite and uncovered multiple new mineralized structures, suggesting potential beyond the historically defined trend. At the West Gore project in Nova Scotia, Military Metals secured surface access in June and launched exploration targeting three magnetic anomalies identified through reprocessed drone magnetics. West Gore was a past-producing mine during World War I, historically yielding over 7,000 tonnes of concentrate with grades reportedly as high as 46% antimony. After regulatory hesitation, Nova Scotia has lifted moratoriums and now actively promotes critical mineral development.

Outside North America, Military Metals controls the Trojarová deposit in Slovakia, a brownfield antimony-gold target within the prolific Vihorlat-Gutin volcanic belt. With more than 2,000 meters of historical drilling and nearby Soviet-era production, the site offers development optionality and relevance for European supply chains.

While companies like Perpetua have already attracted substantial U.S. government support, Military Metals stands to benefit from recent geopolitical moves. In April, the U.S. signed a critical minerals agreement with Ukraine aimed at securing graphite, aluminum, and other inputs. However, as CEO Scott Eldridge noted, Ukraine has no known antimony reserves, leaving a critical supply gap. “The U.S. still has a strategic gap to fill,” Eldridge said. “Military Metals is well-positioned in Western countries to support this shift.”

If the Pentagon acts to strengthen its antimony supply—a likely scenario given current priorities—MILIF could emerge as a strategic opportunity. Securing a contract would not only validate its assets but also accelerate project development and raise the company’s profile among defense-focused investors.

Perpetua Resources Corp. (NASDAQ: PPTA) is already reaping the rewards of the DoD’s largesse, with over $47 million in funding since 2022, including up to $6.9 million in 2025 for its Stibnite Gold-Antimony Project in Idaho. As the only domestic source of mined antimony, Perpetua (NASDAQ: PPTA) is a linchpin in the Pentagon’s strategy to secure materials for bullets and night vision systems. The funding has fast-tracked environmental permitting and demonstrated a fully domestic antimony trisulfide supply chain, showing how DoD dollars can turn a mining project into a national security cornerstone.

Why the spending frenzy? The DoD is playing hardball in a world where China controls 70% of U.S. rare earth imports and slashed magnet exports by 75% in early 2025, rattling industries from EVs to defense. The Pentagon’s response is a no-nonsense push to rebuild domestic supply chains, investing over $870 million in critical minerals through the Defense Production Act since 2021. By backing firms like MP Materials (NYSE: MP) and Perpetua (NASDAQ: PPTA), the DoD ensures the U.S. can produce the raw materials needed for drones, jets, and missiles without kowtowing to foreign suppliers.

The ripple effects are seismic. For Draganfly (NASDAQ: DPRO | CSE: DPRO), a DoD contract opens global defense markets and boosts its stock appeal. MP Materials (NYSE: MP) is leveraging its Pentagon windfall to fuel a $600 million company-funded expansion, backed by a $1 billion loan from JPMorgan Chase and Goldman Sachs. Rare Resource Recycling Inc.’s e-waste innovation could spark a recycling revolution, while Military Metals (OTCQB: MILIF | CSE:MILI) stands to gain credibility and capital with a potential contract. Perpetua (NASDAQ: PPTA) is creating jobs and cleaning up an abandoned mine site in Idaho, proving the economic and environmental upside of these investments. The DoD’s cash isn’t just a lifeline—it’s a launchpad for industry growth and resilience.

Skeptics, like Steve Ellis of Taxpayers for Common Sense, raise an eyebrow at the $110 per kilogram price floor for MP Materials (NYSE: MP), warning taxpayers could overpay if market prices drop. Regulatory hurdles and mineral price volatility pose risks, but the DoD’s urgency to secure domestic supplies trumps these concerns. This spending spree is a calculated bet to ensure the U.S. isn’t left scrambling in a geopolitical crunch.

In 2025, the Pentagon’s spending spree is a masterstroke of strategy and swagger, elevating companies like Draganfly Inc. (NASDAQ: DPRO | CSE:DPRO), MP Materials Corp. (NYSE: MP), Rare Resource Recycling Inc., Military Metals Corp. (OTCQB: MILIF | CSE:MILI), and Perpetua Resources Corp. (NASDAQ: PPTA) to the front lines of national security. This isn’t just about funding—it’s about forging a future where America controls its critical minerals and tech destiny. And in this high-stakes game, the DoD is playing to win.

Sources:

1. GlobeNewswire, “Draganfly’s Commander3 XL UAV Selected by Major Branch of the U.S. Department of Defense for Advanced Operation Initiatives,” July 16, 2025.

2. MP Materials Investor Relations, “MP Materials Announces Transformational Public-Private Partnership with the Department of Defense to Accelerate U.S. Rare Earth Magnet Independence,” July 10, 2025.

3. Department of Defense, “Department of Defense Awards $5.1 Million to Recover Rare Earth Elements from Recycled Electronics,” January 16, 2025.

4. Military Metals Corp Official Website, https://www.militarymetalscorp.com/

5. Perpetua Resources Investor Relations, “Perpetua Resources Awarded up to $6.9 Million in Defense Funding,” 2025.

6. Reuters, “MP Materials seals mega rare-earths deal with US to break China’s grip,” July 10, 2025.

7. CNBC, “U.S. moving fast to secure access to critical minerals to counter China’s dominance of market, Pentagon says,” July 15, 2025.

8. Forbes, “The Pentagon’s Bold Move To Secure U.S. Rare Earth Mineral Needs,” July 11, 2025.

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