MP Materials to build new $1.25B magnet plant in Texas

[Ben Graham]

MP Materials (NYSE: MP) has selected a 120-acre site in Northlake, Texas, as the location of its proposed billion-dollar rare earth magnet manufacturing campus.

The project — dubbed “10X” — represents a key pillar of MP’s public-private partnership with the US Department of War, which was established in July 2025 to accelerate America’s rare earth magnet independence.

The US currently relies heavily on foreign supplies of magnets, which are essential components used in the defence and EV sectors. Each year, it is estimated that the US imports around 10,000 tonnes of magnets from China, making it vulnerable to trade restrictions.

MP Materials climbed 2% to about $60 a share on the announcement, bringing its market capitalization to $10.6 billion. The stock remains about $40 off its all-time high set in mid-October.

Supply chain boost

In a press release on Thursday, MP said its Texas campus would “dramatically advance” America’s ability to produce these strategic components domestically, strengthening its supply chain independence.

The Las Vegas-based company is currently the only fully integrated producer of rare earth materials in the US, with operations centered around its Mountain Pass mine and processing facility in California and a magnet manufacturing site in Texas.

The 10X facility will “significantly expand” the company’s existing manufacturing platform, which encompasses mining and refining, metallization and alloying, sintering, finished magnet production and closed‑loop recycling, MP noted.

Once operational, the campus is expected to contribute to the company’s total production capacity of approximately 10,000 metric tons of NdFeB (neodymium-iron-boron) rare earth magnets per year.

$1.25B investment

In Thursday’s release, MP said it plans to invest $1.25 billion into the 10X project, which is expected to create more than 1,500 direct manufacturing and engineering jobs at the site. The company anticipates breaking ground imminently. Engineering and equipment procurement is currently underway, with commissioning targeted for 2028.

James Litinsky, founder and CEO of MP Materials, said the 10X project “is about building industrial strength at a scale” that the US has not seen in generations, and “the exceptional talent and infrastructure in North Texas make it possible.”

The campus will be located less than 10 miles from its existing magnet production plant in Fort Worth, Texas, which began production in 2024. This will cement North Texas as the center of gravity for the US rare earth magnet supply chain, MP said.

To fund the project, state and local governments have together approved a $200 million package comprising grants, abatements and exemptions for over a decade.

Apple invests $500M in Pentagon-backed MP Materials

When announcing the DoW partnership, MP had already secured a $1 billion commitment from JPMorgan Chase and Goldman Sachs for the 10X facility, as well as a $150 million Pentagon loan to expand its Mountain Pass mine, the source of raw materials for the Texas site.