LAS VEGAS--(BUSINESS WIRE)--MP Materials (NYSE: MP) has received a $58.5 million award to advance its construction of America’s first fully integrated rare earth magnet manufacturing facility. The IRS and Treasury issued the Section 48C Advanced Energy Project tax credit allocation following a competitive, oversubscribedprocessadministered by the Department of Energy that evaluated the technical and commercial viability and environmental and community impact of approximately 250 projects.
MP Materials has received a $58.5 million award to advance its construction of America’s first fully-integrated rare earth magnet manufacturing facility, pictured in October 2023, Fort Worth, Texas (Photo: Business Wire)
Neodymium-iron-boron (NdFeB) magnets are the world’s most powerful and efficient permanent magnets. They are an indispensable component found in the electric motors and generators that power hybrid and electric vehicles, robots, wind turbines, drones, electronics, and critical defence systems. Global demand isexpectedto triple by 2035.
MP Materials beganconstructingits Fort Worth, Texas, manufacturing facility in April 2022. The company is currently producing magnet precursor materials in a North American pilot facility. It expects to commence commercial production of precursor materials in Fort Worth this summer and finished magnets by late 2025. MP will supply these products to General Motors, its foundational customer, to support its North American EV production.
MP will source the factory’s raw material inputs from Mountain Pass, California, where MP owns and operates America’s only scaled and operational rare earth mine and separations facility. At the factory, NdPr oxide produced at Mountain Pass will be reduced to NdPr metal and converted to NdFeB alloy and finished magnets, delivering an end-to-end supply chain with integrated recycling and world-class sustainability.
According to a Section 232investigationcompleted by the Department of Commerce in 2022, sintered NdFeB magnets are "required for critical infrastructure" and "irreplaceable in key defence applications," yet the U.S. is "essentially one hundred per cent dependent on imports," posing a serious national security risk. More than 90% of the world’s NdFeB magnets are produced in China.
About MP Materials
MP Materials (NYSE: MP) produces speciality materials that are vital inputs for electrification and other advanced technologies. MP’s Mountain Pass facility is America’s only scaled rare earth production source. The company is currently expanding its manufacturing operations downstream to provide a full supply chain solution from materials to magnetics. More information is available athttps://mpmaterials.com/.
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Forward-Looking Statements
This press release contains certain statements that are not historical facts and are forward-looking statements for purposes of the safe harbour provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “will,” “target,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the Company’s receipt of the award under the Section 48C Advanced Energy Project. Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. These forward-looking statements are subject to some risks and uncertainties, including timing and unexpected delays in obtaining the award, the Company’s ability to complete the necessary steps to obtain the award (including submitting any required documentation), risks related to the Company’s business strategy and the timing of achieving expected business milestones, and those risk factors discussed in the Company’s filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed by the Company with the Securities and Exchange Commission.
If any of these risks materialize or the assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The Company does not intend to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.
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