MP Materials has received a $58.5 million tax credit award from the U.S. government to advance the construction of America's first fully integrated rare earth magnet manufacturing facility in Fort Worth, Texas.
This facility will produce neodymium-iron-boron (NdFeB) magnets, which are critical components in electric vehicles, wind turbines, drones, electronics, and defense systems. Global demand for these magnets is expected to triple by 2035.
MP Materials currently operates the only scaled and operational rare earth mine and separation facility in the Western Hemisphere, located at Mountain Pass, California. It will source the raw material inputs for the Texas facility from this mine.
The new facility in Texas will have the capacity to produce approximately 1,000 tonnes of NdFeB magnets per year, supporting the production of around 500,000 EV traction motors.
MP Materials has signed a long-term supply agreement with General Motors to provide U.S.-sourced and manufactured rare earth materials, alloys and magnets for GM's electric vehicles.
The tax credit award is part of a $4 billion program by the U.S. government to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions.
Establishing a domestic rare earth magnet supply chain is seen as strategically important to reduce reliance on imports, particularly from China which currently dominates the global market.
In summary, the $58.5 million tax credit award to MP Materials represents a significant step towards restoring U.S. production capabilities for critical rare earth permanent magnets, which are essential components for electric vehicles, renewable energy, and defense applications. This investment aims to reduce supply chain risks and strengthen America's technological competitiveness.
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