MP Materials, headquartered in Las Vegas, is already under a multibillion-dollar agreement from the U.S. Department of Defense. This partnership will help to increase rare earth magnets production by leaps and bounds. By naming this strategic partnership, it brings continued attention to the need for domestic production. The other big priority is ensuring China has less control over the rare earths market, a major point of concern for U.S. supply chains.
The deal comes in response to China’s recent halt on rare earths exports, a move that occurred in March amid escalating trade tensions with the United States under President Donald Trump’s administration. Rare earths, a collection of 17 metals essential for manufacturing magnets that convert electrical power into motion, are vital components in various technologies, including electric vehicles and military equipment.
As part of the agreement, MP Materials plans to initiate commercial magnet production at a new facility in Texas by the end of this year. According to Michael, this new facility will exponentially increase the impact and reach of the company’s work. It will further replenish and strengthen our emerging domestic supply chain for these essential materials. MP Materials and the U.S. Department of Defense are teaming up to construct a new separation facility in Texas. This facility will be focused on magnet production.
The agreement sets forth the development of a commercial-scale recycling plant near Mountain Pass, California. This new facility will be built adjacent to MP Materials’ existing rare earth mine. It will increase the company’s capacities for recovering valuable materials and increasing its leadership position in rare earth production. The new arts initiative is intended to enhance industry-related sustainability initiatives and help support a more circular economy.
To incentivize new investment in domestic rare earth mining and processing plants, the agreement introduces a price floor for rare earths through 2025. This measure aims to stabilize the market and attract additional investments, ensuring that the United States can produce these critical materials independently.
True to the script, after the deal was announced, shares of MP Materials skyrocketed. They soared as much as 10% to reach $52.37 in premarket trading. That’s because investor confidence is high—in the company’s future growth prospects. It is central to the effort to reshape the rare earths landscape in the United States.