MP Materials is building a rare earth magnet factory in Texas, revitalizing the US supply chain

MP Materials announces the commencement of construction for its first rare earth alloy and magnet manufacturing facility in Fort Worth, Texas. This project is a key component of the company’s $700 million, two-year effort to fully restore the U.S. rare earth magnet supply chain.

Capacity and Employment Opportunities

The new facility will have an annual production capacity of approximately 1,000 tons of NdFeB magnets, enough to support the production needs of about 500,000 electric vehicle traction motors, with room for further expansion. The project is expected to create around 150 high-skilled jobs and generate approximately 1,300 indirect employment opportunities. The factory will be located within the AllianceTexas development zone operated by Hillwood Group.

Strategic Partnership with General Motors

MP Materials has also announced a long-term supply agreement with General Motors. Under the terms, MP Materials will supply U.S.-produced rare earth materials, alloys, and magnet products for over 12 models using the Ultium platform. The supply plan is scheduled to begin by the end of 2023, initially with alloy products, followed by gradual capacity increases. GM will incorporate magnets from the Fort Worth plant into multiple models, including the GMC HUMMER EV, Cadillac LYRIQ, and Chevrolet Silverado EV.

Closed-Loop Industry Chain Design

MP Materials operates North America’s only large-scale, active rare earth production facility at Mountain Pass, California. The new Fort Worth manufacturing center will source refined raw materials from Mountain Pass and further process them into finished magnets, creating a complete industry closed loop from mining, smelting, alloy production, magnet manufacturing, to recycling.

In February last year, the U.S. Department of Defense allocated $35 million to MP Materials for optimizing heavy rare earth element refining and separation processes at Mountain Pass. Mountain Pass employs dry tailings technology to achieve zero emissions, with annual water recycling exceeding 1.7 billion liters. During magnet manufacturing, all by-products will be recovered through a closed-loop process to maximize reuse, ensuring sustainable production.

Market Outlook and Strategic Significance

According to independent research firm Adamas Intelligence, global demand for NdFeB magnets is projected to triple by 2035, driven by increased needs in electric vehicle traction motors, wind turbines, and high-efficiency appliances. Beyond electric vehicles, NdFeB magnets are widely used in robotics, drones, and defense systems, which are high-growth technological fields.

By establishing an integrated raw material-to-finished product manufacturing base in Fort Worth, MP Materials is helping the U.S. reduce dependence on Chinese rare earth magnets, strengthening national supply chain security and economic competitiveness. The investment project has received broad support from the Texas state government, the City of Fort Worth, and federal policymakers.