MP Materials begins construction on Texas rare earth magnetics factory, aiming to restore full U.S. supply chain
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(Kitco News) - MP Materials (NYSE: MP) today announced the start of construction at its first rare earth metal, alloy, and magnet manufacturing facility, located in Fort Worth, Texas.
According to the company’s statement, the first-of-its kind U.S. facility is a substantial component of a $700 million investment the company will make over the next two years to fully restore the U.S. rare earth magnetics supply chain.
The project will create around 150 high-skill jobs and 1,300 indirect jobs and is located in Hillwood’s 27,000-acre, mixed-use development, AllianceTexas.
MP Materials’ Texas magnetics facility will source materials from the Mountain Pass rare earths mine, California, and produce magnets powering approximately 500,000 EV motors per year, with potential to scale.
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In parallel, MP Materials and General Motors are co-announcing a definitive supply agreement to produce alloy and magnets for GM’s EV programs. The definitive supply agreement solidifies the terms of a binding agreement announced by MP Materials and GM in December.
Under the long-term agreement, MP Materials will supply U.S.-sourced and manufactured rare earth materials, alloy, and finished magnets for the electric motors in more than a dozen models using GM’s Ultium Platform, with a gradual production ramp that is expected to begin in late 2023, starting with alloy.
MP Materials’ Fort Worth facility will have the capacity to produce approximately 1,000 tonnes of neodymium-iron-boron (NdFeB) magnets per year, supporting the production of approximately 500,000 EV traction motors, with room to scale. In addition to EVs, NdFeB magnets are critical inputs to robots, wind turbines, drones, defense systems, and many other high-growth technologies.
MP Materials is the largest producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass rare earth mine and processing facility in California, North America’s only active and scaled rare earth production site.