IRVINE, California, May 15, 2026, 03:02 PDT
- Mobix Labs has entered into a non-binding letter of intent for the acquisition of Special Project Delivery, a U.S.-based platform focused on critical minerals and energy storage.
- MOBX finished Thursday’s session at $3.11, a jump of 78.74%, with volume at 158.8 million shares.
- The company bumped up the principal on a Leviston Resources convertible note to $4.0 million, pulling in roughly $833,000 in fresh cash.
Mobix Labs Inc. jumped into the rare-earth supply chain on Thursday, announcing it had entered a non-binding letter of intent to buy Special Project Delivery LLC, a private U.S. group with a focus on rare earth elements, critical minerals, and energy storage. Shares in Mobix Labs finished the session up 78.74% at $3.11, with trading volume hitting 158.8 million shares, per the company’s delayed Nasdaq data from LSEG.
Here’s the issue: rare earth elements—critical for magnets, electronics, and defense—remain deeply tied to Chinese supply chains, and Washington wants to change that. Tougher U.S. defense procurement rules kick in on Jan. 1, 2027, broadening restrictions to cover every step in the neodymium-iron-boron magnet supply chain, from raw mining to finished magnets.
The situation hasn’t stabilized yet. Jamieson Greer, the U.S. Trade Representative, noted some progress in rare-earth shipments from China to the U.S., though certain export licenses from Beijing are still dragging. “I would give them a passing grade,” Greer said in an interview with Bloomberg Television, according to Reuters on Friday. Reuters
Mobix said SPD was launched in 2019 out of Newport Beach, California, holding assets in critical minerals, energy storage, and Western U.S. water infrastructure. The letter of intent sets out an initial path for due diligence and negotiations on final terms, but neither party is obligated to complete a deal.
Mobix Labs chairman James Peterson, who previously led Microsemi, called rare earths and critical minerals “one of the defining competitive battlegrounds” for the coming decade. SPD CEO Paul Singarella said the deal would link SPD with a publicly listed defense and dual-use tech firm that’s already active in aerospace and defense sectors. Mobix Labs, Inc
Financing developments played a role in the investor response as well. Mobix disclosed an amended senior secured convertible note with Leviston Resources, lifting the principal to $4.0 million from $3.0 million. In exchange, Mobix is getting roughly $833,000 in extra cash. Convertible notes function as debt that may convert to equity under certain conditions.
Cash is a pressing issue here. Mobix’s 10-Q for the December quarter showed net revenue at $1.875 million—a 41% slide year-over-year—and a net loss of $10.125 million. As of Dec. 31, cash on hand had dwindled to $268,000. The company flagged “substantial doubt” about staying afloat without new funding.
Holders may also face pressure from financing moves. According to a May 7 prospectus, Leviston registered as many as 2.5 million shares for resale tied to the conversion of its promissory note—a chunk that would represent roughly 23.94% of outstanding Class A shares as of April 16, if all the shares hit the market, the filing said.
Mobix is stepping into a sector that’s already benefiting from substantial policy backing. Last year, MP Materials clinched a multibillion-dollar deal with the U.S. Defense Department to ramp up rare-earth magnet production—“a game changer” for the non-China market, according to Adamas Intelligence’s Ryan Castilloux. In March, Lynas Rare Earths unveiled a U.S. government supply arrangement for rare-earth oxides, with roughly $96 million in Pentagon purchases included. Reuters
Prediction-market odds highlight the uncertainty here. On Polymarket, traders are putting the chances of “rare earth export relief” for the U.S. tied to the Trump-Xi summit at just 26% by May 22, according to rules that call for an explicit announcement from China. The market isn’t limited to any one company, but it’s a clear signal that fast action still looks unlikely. Polymarket
Execution stands out as the key risk. The SPD letter isn’t binding—Mobix needs to hammer out terms and secure financing for any agreement. Its recent note amendment flagged another concern: conversions could hit current holders with more dilution, particularly if the share price drops and pushes the conversion price down, which would mean more new shares.
Mobix has had a bumpy ride on Nasdaq. Back in April, the company executed a 1-for-10 reverse split to get its share price up, and after that, Nasdaq confirmed Mobix was back in line with the $1 minimum bid requirement.
Right now, Mobix is seen more as a niche, leveraged bet on defense supply-chain reshoring than a full-fledged rare-earth player. Investors are watching for a few key developments: if SPD negotiations result in a binding deal, how Mobix plans to finance it, and whether the company can translate the critical minerals boom into steady revenue.
