MP Materials [NYSE: MP]
Securing the Domestic Rare Earth Supply Chain

Rare earth magnets have become essential to technologies that demand compact power, precise motion and high efficiency across transportation, energy, robotics and defense. Yet manufacturing those magnets requires more than access to mined material, because every stage from separation through metallization and finished production must work together.

MP Materials [NYSE: MP] is building that connected supply chain in the U.S., linking Mountain Pass in California with Independence in Texas and a larger manufacturing campus planned for Northlake. The strategy moves deliberately downstream rather than treating rare earth production as an end in itself.

Mining and processing at Mountain Pass provide the feedstock, while metallization, alloying, sintering, finishing and recycling extend the material into finished magnetic products. Connecting those stages within one domestic network gives MP Materials greater control over how rare earth material moves from extraction into specialized processing and finished magnet production.

Developing a Domestic Materials Base

Mountain Pass provides the foundation for MP Materials’ vertically integrated model, with extraction, beneficiation, separation and refining taking place at one California site. The company describes the deposit as one of the world’s richest rare earth resources and the only operation of its scale in the Western Hemisphere. Its processing system produces high-purity rare earth materials while recycling water and managing tailings on site.

Production has grown alongside the downstream build-out, with Mountain Pass producing 50,692 metric tons of rare earth oxide contained in concentrate during 2025. NdPr oxide production reached 2,599 metric tons during the same year, representing a 101 percent increase from the preceding year. Higher output at the source strengthens the material base feeding MP Materials’ refining and magnet manufacturing operations.

The California operation also gives MP Materials a controlled starting point for specialty materials that require consistent chemistry and predictable processing. Separation and refining at Mountain Pass establish the material specifications needed for downstream metal, alloy and magnet production.

Turning Rare Earths into Magnets

Independence in Fort Worth gives the material a second stage, transforming refined rare earth inputs into metals, alloys, powders and finished NdFeB magnets. Commercial metal production began there in 2024, followed by the first alloy flake and finished magnet production on commercial equipment during 2025. The 250,000-square-foot facility houses manufacturing areas, laboratories and technical teams supporting MP Materials’ magnetics operation.

Production requires tight control over chemistry, microstructure and finishing as magnet performance depends on precision throughout the manufacturing sequence. MP Materials uses molten salt electrolysis for metal reduction, strip casting for alloy production, powder metallurgy for magnetic material and grain boundary diffusion for performance enhancement. The sequence gives the Texas operation responsibility for several specialized steps between refined rare earth inputs and finished NdFeB magnets.

Commercial activity is also giving the magnetics operation a practical customer base rather than leaving the facility as a development program. MP Materials has a long-term magnet supply agreement with General Motors, while its second-quarter 2026 results reported 840 metric tons of NdPr production and 1,006 metric tons of NdPr sales. The commercial relationship provides an established demand channel as the company expands its domestic magnet manufacturing capabilities.

Scaling Magnet Manufacturing in Texas

Independence provides the operating foundation for MP Materials’ next manufacturing expansion in Northlake, Texas. The planned 10X campus will receive more than $1.25 billion in company investment and occupy a 120-acre site less than ten miles from Independence. MP Materials expects the campus to create more than 1,500 direct manufacturing and engineering jobs while substantially expanding domestic magnet capacity.

Once operational, 10X is expected to contribute to the total U.S. NdFeB magnet production capacity of approximately 10,000 metric tons annually. Engineering and equipment procurement are already underway, with commissioning scheduled to begin in 2028 as MP Materials builds on experience developed at Independence.

The new campus will incorporate MP Materials’ grain boundary diffusion process alongside other manufacturing technologies designed to reduce or eliminate heavy rare earth requirements.

Raw materials come from Mountain Pass, while scrap generated during Texas production will return through the company’s recycling systems. The expansion follows a public-private partnership with the U.S. Department of Defense that supports the accelerated development of domestic rare earth magnet production. Its partnership includes long-term commitments around NdPr products and magnet output, creating additional support for the planned manufacturing expansion.

Bringing Recycling Into the Supply Chain

Recycling adds another layer to MP Materials’ model by returning rare earth materials from manufacturing scrap and end-of-life products into the production cycle. An agreement with Apple calls for magnets made from 100 percent recycled rare earth materials, with feedstock processed through a dedicated commercial-scale recycling line at Mountain Pass.

The arrangement builds on nearly five years of technical collaboration between MP Materials and Apple around recycling technology and magnet production. Feedstock will come from post-industrial and end-of-life magnets before moving through Mountain Pass and returning to Independence for finished magnet manufacturing.

MP Materials also plans to reintegrate scrap generated by Texas magnet manufacturing through short-loop and long-loop recycling systems across Texas and California. Greater control over recovered material gives the business another source of feedstock while keeping recycling closer to its existing production network.

Recycling consequently becomes part of the broader production architecture, creating another pathway for rare earth material to re-enter manufacturing rather than leaving recovery as a separate activity.

Expanding Toward Full Supply Chain Control

MP Materials’ next stage centers on expanding the capacity and material range supporting high-performance magnet production. The 10X build-out will extend the manufacturing footprint, while the company also continues developing a heavy rare earth separation facility at Mountain Pass, targeting dysprosium and terbium for high-performance NdFeB magnet production.

The combination of upstream material production, downstream magnet manufacturing and recycling gives MP Materials a broader domestic pathway for moving rare earths through the value chain.

Its recognition as the Top Rare Earth Magnetics Producer 2026 reflects MP Materials’ expanding role across mining, refining, magnet manufacturing and the infrastructure supporting those capabilities.