MP Materials Plans Major Rare Earth Magnet Plant in North Texas

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Using $200 million in funding from various governments, MP Materials is planning "10X," a new rare-earth magnet manufacturing campus, in Northlake, Texas. Also, it released its fourth-quarter and full-year 2025 earnings report last week.

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Drawn to Texas

U.S. rare earth giant MP Materials announced plans last week to build a new rare-earth magnet complex in Northlake, Texas, near its Independence plant in Ft. Worth. The Las Vegas, Nevada-based integrated rare earth producer plans to spend more than $1.25 billion on the 120-acre site, which will include $200 million from the State of Texas, Denton County and the City of Northlake.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from the rare-earth magnet project report and the Independence plant profile.

Funding from the governments will be meted out over a 10-year period, and will include grants, abatements and exemptions. That includes $66 million in grants from the Texas Enterprise Fund and the Texas Semiconductor Innovation Fund.

This will be "the largest and most strategic U.S. rare earth magnet manufacturing asset in history," said the company in a statement. It will contribute to the company's total production capacity of approximately 10,000 metric tons of neodymium-iron-boron (NdFeB) rare earth magnets per year, it said.

Groundbreaking would start "imminently," with commissioning expected in 2028.

NdFeB is the strongest type of rare-earth permanent magnet. Used widely in electric motors, hard drives and renewable energy, it features high magnetic strength, coercivity and energy density in compact sizes.

The planned plant is the foundation of MP Materials' July 2025 public-private partnership agreement with the U.S. Department of Defense (DOD) for "a multibillion-dollar package of investments and long-term commitments" for its development. The campus will be wholly owned and operated by MP.

In producing the NdFeB magnets, 10X will employ new technologies, including MP's Grain Boundary Diffusion (GBD), among others, to reduce or eliminate the requirements for certain heavy rare-earth materials. For the light and heavy materials it does use, MP will source them from its Mountain Pass, California, facility.

By the Numbers

• $200 Million: Amount of 10X contributed by various regional governments
• $1.25 billion: Total planned investment in the campus
• 10,000: Total metric tons of NdFeB rare earth magnets MP expects to produce when 10X comes online

Reporting the Bigger Picture

MP Chief Executive Officer James Litinsky called 2025 "a transformational year" for the company, citing in particular its DOD agreement.

Among its 2025 achievements, along with the $200 million in Texas funding, the company:

• Signed a significant NdPr oxide offtake agreement with new strategic original equipment manufacturer (OEM).
• Produced a record 2,599 metric tons of NdPr oxide and sold 1,994 metric ton, a
• 101% and 75% increase year-over-year, respectively.
• Produced a record 50,692 metric tons of rare earth oxide (REO) in concentrate, a 12% increase year-over-year.
• Entered into a public-private partnership with the DOD to accelerate supply-chain independence.
• Signed a definitive, long-term agreement to supply Apple with rare earth magnets made from materials recycled at Mountain Pass.

Fourth-Quarter Results

MP's net income for the quarter was $9.4 million, compared with a $22.3 million loss for the same quarter a year earlier.

However, its adjusted fourth-quarter earnings before interest, taxation, depreciation and amortization (EBITDA) increased to $39.2 million from a fourth-quarter 2024 EBITDA loss $10,707. The company credited the increase to a NdPr price floor protection agreement with the DOD that began on October 1.

Full-Year Results

For 2025, MP's revenue increased 10% over 2024, to $224.4 million, "primarily as a result of the ramp-up in production of separated products throughout 2025, resulting in higher NdPr oxide and metal revenue in the current year," the company reported.

The company reported a full-year net loss of $85.5 million, compared with a net loss of $65.4 million for 2024.

Also, the company began receiving revenue from sales of magnetic precursor products in fourth-quarter 2025.

International sanctions cost the company some revenue in 2025, as "the increase (in 2025 revenue) was partially offset by lower rare earth concentrate revenues, driven by the cessation of all sales to China starting in July 2025."

Key Takeaways

• 10X is a key component of MP's July, 2025 public-private partnership agreement with the Department of Defense to improve U.S. security by onshoring more key manufacturing.
• That agreement also helped lift MP's financial report.
• 10X is expected to begin operating in 2028.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
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) 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 over 250,000 current and future projects worth $30.2 Trillion (USD).