MP Materials chooses Texas for new rare earth magnet factory

• The facility will use raw materials from MP Materials' Mountain Pass mine in California, the only commercial-scale rare earths mine in the U.S., and create 1,500 direct jobs
• Once operational, the plant could eliminate direct U.S. import dependence on rare earth magnets, which fell to 6,000 tons in 2025 amid Chinese export controls
• MP Materials will increase total production capacity to 10,000 metric tons annually across two Texas facilities, with customers including General Motors and Rivian

Summary: MP Materials Selects Texas for $1.25B Rare Earth Magnet Facility

Key Development:

MP Materials has selected Northlake, Texas, as the location for a new $1.25 billion rare earth magnet manufacturing campus called "10X," announced Thursday. The facility addresses critical supply chain vulnerabilities in minerals essential for defense, data centers, and consumer electronics.

Production Capacity:

The 10X facility will produce approximately 7,000 metric tons of rare earth magnets annually, bringing MP Materials' total production capacity to 10,000 metric tons per year. The company already operates a Fort Worth, Texas facility producing 3,000 tons annually, which began commercial production in 2025 and serves customers including General Motors and Stellantis.

Strategic Significance:

China currently dominates the rare earths supply chain, controlling over 90% of processing, separation capacity, and magnet manufacturing. China's export restrictions in 2024 highlighted critical vulnerabilities, causing U.S. rare earth magnet imports to drop to approximately 6,000 tons in 2025. The new facility could potentially eliminate direct import dependence, though total U.S. demand remains higher when including end products.

Government Partnership:

The Department of Defense took a $400 million stake in MP Materials in 2025 as part of the Trump administration's initiative to secure domestic access to critical minerals. The partnership reflects heightened national security concerns regarding mineral supply chain dependencies.

Timeline and Impact:

Production is expected to begin in 2028, creating 1,500 direct manufacturing and engineering jobs. Raw materials will be sourced from MP Materials' Mountain Pass mine in California—the only commercial-scale rare earths mine in the United States.