Shares of Australian rare earths miners, including Lynas and Iluka Resources , soared on Friday after U.S.-based MP Materials' a multibillion-dollar deal with the U.S. government to boost production of rare earth magnets.

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.

Rare-earth miner MP Materials said this morning the U.S. Department of Defense is making a big investment in its rare-earth magnets business, sending its stock price up 60% in morning trading. Now, investors in another rare-earths start-up, USA Rare Earth ( USAR 17.88%), are wondering if their company might be next in line.