MP Materials to build $1.25 billion rare earth magnet expansion

MP Materials Corp. announced February 26 that they would spend $1.25 billion to build a new rare earth metal magnet manufacturing site in Northlake, Texas, near an existing factory it operates in Fort Worth. According to a company release, the new site is located about ten miles from the company’s existing site and will create 1,500 new jobs.

The new site, which MP Materials has dubbed “10X,” will expand the company’s U.S. rare earth magnetics production base: MP Materials said it expects the new site to add 10,000 metric tons of neodymium-iron-boron (NdFeB) rare-earth magnets production per year. Construction is set to begin immediately, and MP Materials expects the site to be operational by 2028.

The state of Texas and local governments provided incentives worth about $200 million to MP Materials in grants, abatements and tax exemptions. The Texas Enterprise Fund and Texas Semiconductor Innovation Funds collectively gave $66 million. According to MP Materials, the new plant is also related to the company’s public-partnership with the Department of Defense to increase rare-earth magnet manufacturing in the United States.

What people are saying

“10X is about building industrial strength at a scale the United States has not seen in generations, and the exceptional talent and infrastructure in North Texas make it possible,” said James Litinsky, CEO of MP Materials. “We are advancing key objectives under our public-private partnership with the Department of War and accelerating America’s rare earth and magnet independence with an uncompromising focus on speed, execution, and delivery.”

“Hardworking Texans will advance America’s semiconductor manufacturing independence,” said Texas Gov. Greg Abbott. “This Texas-sized investment by MP Materials in Northlake will create more than 1,500 corporate, manufacturing, and engineering jobs and dramatically expand domestic manufacturing of rare earth magnets to reduce reliance on foreign supply chains. This expansion in North Texas reflects the strength of our skilled and growing workforce and our advanced manufacturing expertise. Working together with innovative industry partners, Texas will accelerate America’s leadership for decades to come.”

“When we pass smart, pro-growth policies, companies choose Texas — and this investment proves North Texas is leading America’s industrial resurgence,” said Senator Tan Parker.

“Denton County and all of North Texas are thrilled to see MP Materials deepen its roots in our community,” said Representative Mitch Little. “These 1,500 new jobs represent the type of essential, skilled work that helps Texans achieve the American dream and makes our country more secure.”

“Northlake is incredibly excited that MP Materials has chosen Northlake for its next major facility and a $1.25 billion investment in our community,” said Town of Northlake Mayor Brian Montini. “This is a historic milestone for our town and a strong statement about the future of Northlake as a destination for world-class industry and innovation. Our Town Council, along with Northlake’s economic development boards and our county and state partners, worked tirelessly to ensure MP Materials knew that Texas is the best place in America to invest, grow, and do business. We are proud of the collaboration that brought this opportunity to Northlake, and we look forward to the jobs, economic growth, and long-term community impact this project will deliver for our residents and the entire region.”

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