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An artificial intelligence company agreed on Wednesday to acquire a minority stake in a privately held mining firm that operates what could become one of the world's largest deposits of rare earth and precious metals, the companies announced Tuesday.
Messier 42 LLC, known as M42, plans to deploy its AI technology to help further define the scope of a polymetallic deposit located in the Western United States. The site contains precious metals alongside rare earth and critical minerals—materials essential to defense systems, semiconductor manufacturing and renewable energy technologies.
The unnamed mining company, which has spent more than six years developing the site, expects to begin profitable production within a year, according to the announcement. The deposit includes metals that are either not currently produced domestically or are imported from what the companies described as "politically unappealing parts of the world."
M42 will use what it calls its "Transformational AI platform" to non-invasively locate and define the extent of the deposit, which both companies believe could rank among the largest globally once current resource reports are upgraded based on retesting with more accurate methods.
"As the global race to secure critical and rare earth elements intensifies, we are thrilled to have found a domestic partner with a world-class resource right here on American soil—where we can apply our AI platform to further define and advance the understanding of these strategic assets," said Michael Sandoval, chief scientist of M42.
The deal comes as the United States seeks to reduce dependence on foreign supply chains for materials crucial to advanced manufacturing and national defense. China currently dominates global rare earth production, controlling an estimated 70% of mining and 90% of processing capacity.
"This investment and partnership with M42 AI in our company strengthens U.S. capacity to secure critical minerals and rare earths—resources that are indispensable to defense systems, advanced semiconductors, renewable energy, and next-generation technologies," said a spokesperson for the private resource company.
The mining company's management team includes experienced professionals in mining and corporate development who have worked on the project since its inception. The elements contained in the deposit are expected to enable innovation across semiconductors, energy, robotics, defense and aerospace sectors.
The agreement remains subject to certain conditions and is expected to close before the end of the year.
M42 describes itself as a global leader in technology solutions and digital transformation, providing AI, cloud computing and cybersecurity services across various industries.
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