MP Materials has entered into a transformational public-private partnership with the United States Department of Defense to dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.
As part of the deal, the DoD is positioned to become the largest shareholder in MP Materials after agreeing to purchase $400 million of a newly created series of the company’s preferred stock.
With the multibillion-dollar investment, MP Materials will construct its second domestic magnet manufacturing facility (10X Facility) at a soon-to-be-chosen location. The company is currently commissioning a magnetics facility in Texas, known as Independence, which anchors its downstream capabilities.
The 10X Facility is expected to begin commissioning in 2028. Once completed, MP Materials’ total U.S. rare earth magnet manufacturing capacity will reach an estimated 10,000 metric tons.
The DoD has agreed to a 10-year price floor commitment of $110 per kilogram for MP Materials’ stockpiled or sold NdPr products. Additionally, all magnets produced at the 10X Facility will be purchased by defense and commercial customers under a 10-year offtake agreement.
MP Materials said it also expects to add additional heavy rare earth separation capabilities at its Mountain Pass, Calif., operation, solidifying its status as a national strategic asset where high-purity rare earth materials are extracted, separated and refined all in one location.
Source: MP Materials