MP Materials Restores U.S. Rare Earth Magnet Production

Rhea-AI Summary

MP Materials (NYSE: MP) has achieved a significant milestone by initiating commercial production of neodymium-praseodymium (NdPr) metal and trial production of automotive-grade, sintered NdFeB magnets at its Independence facility in Fort Worth, Texas. This marks the restoration of U.S. rare earth magnet production for the first time in decades.

The Independence facility is set to produce approximately 1,000 metric tons of finished NdFeB magnets annually, with production ramping up in late 2025. The facility will supply magnets to General Motors and other manufacturers, using raw materials from MP's Mountain Pass mine in California.

In 2024, Mountain Pass achieved record production of over 45,000 metric tons of rare earth oxides in concentrate and approximately 1,300 metric tons of NdPr oxide, along with other refined products. This development represents a important step in establishing a fully integrated, domestic rare earth magnet supply chain.

Positive

• Commenced commercial production of NdPr metal and trial production of NdFeB magnets
• Secured supply agreement with General Motors
• Achieved record production of 45,000 metric tons of rare earth oxides in 2024
• Produced approximately 1,300 metric tons of NdPr oxide in 2024
• Facility capacity of 1,000 metric tons of finished NdFeB magnets annually

Negative

• Production ramp-up not expected until late 2025

Insights

Materials Industry Expert

MP Materials' commencement of commercial rare earth magnet production marks a transformative moment in U.S. industrial capability. The Independence facility in Fort Worth represents the first domestic source of these critical components in decades, addressing a strategic vulnerability in the U.S. manufacturing base.

The significance of this development cannot be overstated. NdFeB magnets are not just another industrial component - they are the most powerful permanent magnets available and are absolutely important for electric vehicles, wind turbines and advanced military systems. The global market has been dominated by Chinese producers, who control approximately 80% of global production. MP Materials' achievement in creating a fully integrated supply chain - from mining to finished magnets - represents a major shift in global rare earth dynamics.

The company's execution has been impressive, with record production of over 45,000 metric tons of rare earth oxides at Mountain Pass in 2024. The planned capacity of 1,000 metric tons of finished NdFeB magnets per year at Independence, while modest compared to global demand, establishes a important foothold in this strategic industry. The secured partnership with General Motors provides a stable demand base, critical for scaling operations.

For investors, this development represents a significant de-risking event. The successful transition from mining and processing to high-value magnet production demonstrates operational capabilities across the entire value chain. The timing is particularly favorable, coinciding with increasing demand from EV manufacturers and growing concerns about supply chain resilience.

Industrial Policy Analyst

The commencement of rare earth magnet production at MP Materials' Independence facility represents a important milestone in U.S. efforts to secure critical supply chains. This development aligns perfectly with recent policy initiatives, including the CHIPS and Science Act and the Inflation Reduction Act, which aim to strengthen domestic manufacturing capabilities in strategic sectors.

The timing is particularly significant given growing concerns about supply chain vulnerabilities exposed during recent global disruptions. The ability to produce these critical components domestically reduces dependence on foreign suppliers and strengthens national security. The Department of Defense has long identified rare earth elements and their finished products as strategic materials, making this development particularly noteworthy from a defense industrial base perspective.

The gradual production ramp-up starting in late 2025 suggests a measured approach to scaling operations, which is prudent given the technical complexity of magnet manufacturing. The partnership with General Motors indicates strong commercial viability, while also supporting the administration's goals for domestic EV supply chains.

Commercial NdPr Metal Production Begins at Independence, MP’s Fully Integrated Rare Earth Magnet Manufacturing Facility in Texas for the First Time in a Generation

Trial Production of Automotive-Grade, Sintered NdFeB Magnets Underway, with First Deliveries on Track for Year-End

FORT WORTH, Texas--(BUSINESS WIRE)-- MP Materials (NYSE: MP) has reached a pivotal milestone in restoring the U.S. rare earth magnet supply chain. The company’s flagship Independence facility in Fort Worth, Texas, has commenced commercial production of neodymium-praseodymium (NdPr) metal and trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets. These achievements bring the U.S. closer to reestablishing a fully integrated, domestic supply chain for these critical components for the first time in decades.

A front view of Independence, MP Materials' state-of-the-art rare earth magnet manufacturing facility in Fort Worth, Texas. (Photo: Business Wire)

“This milestone marks a major step forward in restoring a fully integrated rare earth magnet supply chain in the United States,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “With record-setting upstream and midstream production at Mountain Pass and both metal and magnet production underway at Independence, we have reached a significant turning point for MP and U.S. competitiveness in a vital sector.”

NdFeB magnets — the world’s most powerful and efficient permanent magnets — are essential components in vehicles, drones, robotics, electronics, and aerospace and defense systems. Despite their indispensable role, the U.S. has relied almost entirely on foreign sources for these critical inputs for decades.

MP Materials is addressing this gap by building America’s first fully integrated rare earth metal, alloy, and magnet manufacturing facility. With commercial NdPr metal production already online and trial production of sintered magnets underway, Independence is poised to produce approximately 1,000 metric tons of finished NdFeB magnets per year, with a gradual production ramp beginning in late 2025. The facility will supply magnets to General Motors and other manufacturers, sourcing its raw materials from Mountain Pass, MP Materials’ mine and processing facility in California.

In 2024, MP Materials achieved record-breaking production at Mountain Pass, delivering more than 45,000 metric tons of rare earth oxides (REO) contained in concentrate — an all-time high for U.S. primary production. Mountain Pass, America’s only active rare earth mining and processing operation of scale, also set a midstream production record, producing approximately 1,300 metric tons of NdPr oxide in 2024, in addition to cerium, lanthanum, and other separated and refined products.

About MP Materials

MP Materials (NYSE: MP) produces specialty materials that are vital inputs for electrification and other advanced technologies. MP’s Mountain Pass facility is America’s only scaled rare earth production source. The Company is currently expanding its manufacturing operations downstream to provide a full supply chain solution from materials to magnetics. More information is available at https://mpmaterials.com/.

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Forward-Looking Statements

This press release contains certain statements that are not historical facts and are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “will,” “target,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are subject to a number of risks and uncertainties, including risks related to the Company’s ability to make NdFeB magnets and deliveries by the end of 2025, risks related to the timing and achievement of expected business milestones, and those risk factors discussed in the Company’s filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed by the Company with the Securities and Exchange Commission.

If any of these risks materialize or the assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The Company does not intend to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250122740803/en/

Investors:

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Media:

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Source: MP Materials

FAQ

What is MP Materials' production capacity for NdFeB magnets at the Independence facility?

MP Materials' Independence facility is designed to produce approximately 1,000 metric tons of finished NdFeB magnets per year, with production ramping up in late 2025.

How much rare earth oxide did MP Materials produce at Mountain Pass in 2024?

MP Materials produced over 45,000 metric tons of rare earth oxides (REO) in concentrate at Mountain Pass in 2024, setting a U.S. primary production record.

Who are the main customers for MP Materials' rare earth magnets?

General Motors is a confirmed customer for MP Materials' rare earth magnets, with other manufacturers also planned as customers.

When will MP Materials begin full-scale production at the Independence facility?

MP Materials plans to gradually ramp up production at the Independence facility starting in late 2025.

What is the significance of MP's Independence facility for the U.S. rare earth supply chain?

The Independence facility represents the first U.S. rare earth magnet manufacturing operation in decades, helping restore a domestic supply chain for these critical components.