MP Materials Picks Texas for a New Rare Earth Magnet Hub

Photo Credit: MP Materials

MP Materials Corp. said it will build a large-scale rare earth magnet manufacturing campus in Northlake, Texas, committing more than $1.25 billion to expand domestic production of strategic materials used in electric vehicles, defense systems and advanced electronics. The company disclosed the plan in a statement, framing the project as a major step in strengthening U.S. supply chain resilience.

According to reports, the 120-acre development, branded “10X,” will sit near MP’s existing Independence facility in Fort Worth. Once fully operational, the new site is expected to lift the company’s total annual capacity to about 10,000 metric tons of neodymium-iron-boron (NdFeB) magnets, a key component in high-performance motors and generators.

Rare earth magnets have become a focal point of U.S. industrial policy. The United States relies heavily on overseas supply—particularly from China—for processing and magnet manufacturing. Federal data show China dominates global NdFeB magnet output, while U.S. production capacity has only recently begun to reemerge after decades of offshoring. Analysts say the imbalance has raised concerns in Washington as electrification, robotics and artificial intelligence drive surging demand.

MP, which operates the Mountain Pass rare earth mine in California, began restoring downstream capabilities in recent years. Commercial metal production at its Texas facility started in 2024, followed by alloy and finished magnet output in 2025, company disclosures show.

The Northlake campus is expected to generate more than 1,500 manufacturing and engineering jobs. Groundbreaking is anticipated soon, with commissioning targeted for 2028. Engineering design and equipment procurement are already underway.

State and local authorities approved an incentive package valued at roughly $200 million over more than a decade. The package includes grants from the Texas Enterprise Fund and the Texas Semiconductor Innovation Fund, along with tax abatements and other support measures. Industry groups argue that such incentives are increasingly common as states compete to attract advanced manufacturing tied to national security and semiconductor supply chains.

The site, to be acquired from Hillwood within the AllianceTexas industrial development, was selected after a nationwide search led by CBRE, the company said.

The project also advances MP’s public-private partnership with the U.S. Department of War, announced last year, aimed at accelerating domestic magnet independence. The arrangement provides long-term demand visibility while keeping the facility under MP’s ownership and control. Analysts say federal backing reduces commercial risk for capital-intensive processing investments that historically struggled to compete with lower-cost Asian producers.

MP plans to source light and heavy rare earth materials from its Mountain Pass operations. The company said the Texas campus will incorporate proprietary grain boundary diffusion technology designed to reduce or eliminate heavy rare earth inputs while maintaining magnet performance. Production scrap will be reintegrated into recycling circuits in Texas and California to improve material efficiency and lower costs.

Major customers include General Motors under a long-term supply agreement and Apple through a collaboration focused on rare earth recycling and magnet production. Observers say such commercial commitments are critical to underpinning new U.S. capacity.

Chief Executive James Litinsky described the expansion as industrial scaling not seen domestically in decades. Texas Governor Greg Abbott said the investment would reinforce the state’s advanced manufacturing base and reduce foreign supply dependence. U.S. Senators John Cornyn and Ted Cruz both characterized the project as strengthening economic and national security.

Analysts caution that execution risk remains, citing capital intensity, workforce development and the challenge of achieving cost competitiveness at scale. Still, they say sustained policy support and rising demand from electric vehicles, data centers and defense applications could provide structural tailwinds.

Source: MP Materials

SUNSHINE Spotlight: MP Materials’ Texas expansion underscores the accelerating U.S. effort to rebuild a fully domestic rare earth magnet supply chain at an industrial scale.