MP Materials has announced a new public-private partnership with the U.S. Department of Defense aimed at bolstering the domestic supply chain for rare earth magnets. This competitive partnership is intended to reduce the U.S.’s reliance on foreign countries for critical materials. These materials are essential to thousands of advanced high-tech applications, including many for our defense systems.
The three-party joint venture plans to increase manufacturing capacity for rare earth permanent magnets. These magnets are an essential link in MP Materials’ highly touted supply chain. As the U.S. increases domestic production to shore up its supply chain, this action responds to geopolitical uncertainties and ensures a steady supply of materials critical for our national security and technological advancement.
Open-pit neodymium mine MP Materials’ Mountain Pass, California operation. Mining here began in January 2020. Its environmental policies directly affect the extraction and production of rare earths. Screenshot of a photo from Reuters in early 2020 that called attention to the importance of this site. It demonstrated the impact and significance of the mining operations found there.
As a U.S.-based company, MP Materials has positioned itself as the preeminent rare earth production company in North America. This partnership with the Department of Defense is the latest step towards reaching self-sufficiency in rare earth materials. This joint undertaking will allow us to blunt the effect of imported materials, which have historically upended the stability in our supply line.
The partnership hopes to incubate not just increased production, but greater innovation in the industry as well. MP Materials intends to tap into these federal resources and expertise. Their goal is to create breakthrough technologies and processes that dramatically increase the efficiency of rare earth magnet manufacturing.