On July 10, MP Materials unveiled a collaboration with the U.S. Department of Defense. A research report by CITIC Securities underscores that this alliance underscores the U.S.'s heightened emphasis on securing independent rare earth permanent magnet supply chains, coupled with the significant costs associated with domestic production of praseodymium-neodymium metals. This further underscores the pivotal strategic role of rare earth resources. On the demand front, the appetite for rare earth permanent magnets in sectors such as electric vehicles, air conditioners, and industrial robots continues to escalate. The swift commercialization of humanoid robots is anticipated to further bolster the long-term demand for these materials. Additionally, export volumes are gradually rebounding, while the rainy season in Southeast Asia has led to a rigid supply increase, expected to stabilize and gradually elevate rare earth prices. This is poised to drive a sustained enhancement in the profitability of firms within the rare earth industry chain. CITIC Securities consistently advocates for the strategic allocation value of the rare earth industry chain.