MP Materials Poised to Boost Domestic Rare Earth Material, Magnet Production

Researched by Industrial Info Resources (Sugar Land, Texas)--MP Materials Corporation (Las Vegas, Nevada), the only rare earth producer in the U.S., reached a long-term agreement to supply Apple Incorporated (Cupertino, California) with rare earth magnets, which came a week after the Department of Defense (DoD) agreed to become the largest shareholder in the company and pledged capital investment. Industrial Info is tracking $1.3 billion worth of projects from MP Materials.

Rare earths are a group of 17 metals used in part to produce magnets that are essential components of the U.S. economy, with commercial applications including smartphones, computers and other electronics, as well as vehicles, robotics and energy systems. Defense applications include fighter jets and drones.

The rare earth magnets would be supplied from MP Materials' manufacturing plant in Fort Worth, Texas and produced from 100% recycled materials, including feedstock processed at the company's Mountain Pass Rare Earth Element Mine & Mill in California--which is the only operational rare earth mine in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can read profiles for the Fort Worth plant and Mountain Pass site.

The agreement with Apple marks the second major development expected to boost MP Materials' growth efforts and domestic production of rare earths and rare earth magnets: earlier this month, the company entered a public-private partnership with the DoD to "dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency."

The U.S. relied on China for about 70% of its rare earth imports in 2023, according to the U.S. Geological Survey.

Rare earths and their magnets have been a point of contention in the ongoing tit-for-tat trade war between the U.S. and China, with China restricting exports of seven rare earths in April in response to President Donald Trump's tariffs; however, following discussions between the two countries in June, China issued temporary six-month licenses to certain major U.S. automaker suppliers and select firms. The countries have since touted a trade agreement--although it has yet to be finalized and details are scarce--under which China would review and approve exports of certain items, including rare earth metals, while the U.S. would relax export controls.

To fulfill the agreement with Apple, and in line with the DoD partnership, MP Materials has said it will "significantly expand" the capacity at the Fort Worth plant, with magnet shipments expected to begin in 2027. Subscribers to the GMI Project Database can click here to read the project report.

The plant processes neodymium-praseodymium (NdPr), a rare earth raw material, which is alloyed with iron to produce the magnets.

The Department of Defense will purchase $400 million worth of company stock and provide a "multibillion-dollar package of investments and long-term commitments," according to a joint press release. MP Materials could use the investment to construct a second rare earth element mine and mill, adding mining and processing facilities to boost the company's production of rare earth oxide from 3,000 tons per year to 10,000 tons per year. Located at a to-be-chosen site, it is part of what the company is dubbing the "10X Facility," which will serve defense and commercial customers. MP Materials expects commissioning will begin in 2028. The company also plans to build a second magnet-manufacturing facility.

Subscribers can click here for the project report.

The DoD also agreed to a 10-year agreement with MP Materials that sets a price floor of $110 per kilogram for NdPr products, including those stockpiled or sold.

MP Materials and the DoD also announced a commitment from JP Morgan Chase & Company (New York, New York) and Goldman Sachs (New York) to provide $1 billion of financing for the costs of constructing and developing the 10X facility.

In addition, within 30 days, MP Materials expects to receive the proceeds of a $150 million loan from the DoD in connection with its plan to expand its heavy rare earth separation capabilities at Mountain Pass. Subscribers can click here for a related project report, although Industrial Info currently is tracking the project with a low probability of kicking off in April 2026.

Another proposed project at Mountain Pass is the restart/refurbishment of the site's chlor-alkali plant. The project will bring the mothballed, 27.5-ton-per-day plant back to life, to recycle process waste solution in a closed-loop system to produce hydrochloric acid and caustic soda used in the rare earth separation process. Industrial Info is tracking the project with a medium probability (70-80%) of kicking off in March 2026. Subscribers can click here for the project report.

Subscribers to the GMI Database can click here for a full list of projects from MP Materials.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).