MP Materials selects Texas for rare earth magnet manufacturing site

MP Materials has made a significant decision to establish a new rare earth magnet manufacturing campus in Northlake, Texas, with an investment of $1.25 billion. This move comes at a crucial time when there is a growing need to secure domestic supplies of metals essential for various industries such as data centers, defense, and personal electronics.

The new facility, named “10X,” will utilize rare earth raw materials sourced and processed at MP Materials’ Mountain Pass mine in California. This mine is currently the only commercial-scale rare earths mine in the United States. Once operational, the 10X facility is expected to produce approximately 7,000 metric tons of rare earth magnets annually, increasing the company’s total production capacity to 10,000 metric tons per year.

MP Materials already operates another magnet manufacturing facility in Forth Worth, Texas, which commenced commercial production in 2025. This facility has a total capacity of around 3,000 tons per year and serves customers such as General Motors and Apple.

The dominance of China in critical minerals supply chains, including rare earths, has raised concerns about the country’s control over processing, separation capacity, and magnet manufacturing. In response to this, MP Materials’ new factory in Northlake could potentially reduce direct import dependence for rare earth magnets in the U.S. However, the overall demand for rare earth magnets, including through imports of end products like cars and phones, remains significantly high.

In an effort to boost domestic mining, the Trump administration has introduced several initiatives. The Defense Department has taken a $400 million stake in MP Materials and guaranteed a minimum price of $110 per kilogram for neodymium-praseodymium oxide, a key component in magnet production, for a period of 10 years. As part of this agreement, all output from the 10X facility is currently allocated to the Pentagon for the next decade. Nonetheless, there is potential for commercial customers to utilize the material under the Department of Defense’s approval.

MP Materials’ founder and CEO, James Litinsky, emphasized the company’s commitment to enhancing America’s rare earth and magnet independence through efficient operations. The new factory is slated to commence production in 2028 and is expected to create 1,500 direct manufacturing and engineering jobs at the site.

Senator Ted Cruz of Texas praised MP Materials for its efforts to reduce dependence on critical minerals sourced from China, citing the Chinese Communist Party as a significant national security threat to the U.S. He commended the company for building the necessary infrastructure to enhance American national security and reduce reliance on foreign sources.