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- MP Materials nabs $58.5 million to produce rare earth magnets in the US, planning for use in GM’s EV motors
MP Materials nabs $58.5 million to produce rare earth magnets in the US, planning for use in GM’s EV motors
MP Materials, a producer of specialty materials for electrification and other advanced technologies, has been awarded $58.5 million to bolster the construction of America’s first fully integrated rare earth magnet manufacturing facility.
Neodymium-iron-boron (NdFeB) magnets, known for their power and efficiency, are essential components in electric motors and generators that power hybrid and electric vehicles, robots, wind turbines, drones, electronics, and critical defense systems. The global demand for these magnets is expected to triple by 2035.
MP Materials initiated construction of its manufacturing facility in Fort Worth, Texas, in April 2022. The company is currently producing magnet precursor materials in a North American pilot facility and expects to commence commercial production of precursor materials in Fort Worth this summer. Finished magnets are expected to be produced by late 2025. These products will be supplied to General Motors to support its North American EV production.
The factory’s raw material inputs will be sourced 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 sustainability.
A Section 232 investigation completed by the Department of Commerce in 2022 revealed that sintered NdFeB magnets are “required for critical infrastructure” and “irreplaceable in key defense applications,” yet the U.S. is “essentially one hundred percent dependent on imports,” posing a serious national security risk. More than 90% of the world’s NdFeB magnets are produced in China.
The Section 48C Advanced Energy Project tax credit allocation was issued by the IRS and Treasury following a competitive process administered by the Department of Energy. This process evaluated the technical and commercial viability, as well as the environmental and community impact, of approximately 250 projects.