The investment package and long-term DOD commitments will enable the Las Vegas-based rare earths miner to build a second domestic manufacturing plant.
MP Materials Corp. announced on July 10 what it called a “transformational public-private partnership” with the U.S. Department of Defense (DOD) to build out the nation’s rare earth magnet supply chain and reduce U.S. dependency on China and other countries.
According to MP Materials and DOD officials, the multibillion-dollar investment package and long-term commitments will enable the Las Vegas-based rare earths miner to build a second comprehensive, end-to-end domestic magnet manufacturing plant, called “10X Facility,” at a location to be chosen soon, serving both defense and commercial markets.
As a part of the deal, the DOD will get a 15 percent stake in the fast-growing Las Vegas mining company.
In pre-market trading on the New York Stock Exchange, MP Materials shares spiked more than 54 percent to $46.25.
Once the new facility is completed, expected by 2028, MP Materials’ total U.S. rare earth magnet manufacturing capacity is projected to reach 10,000 metric tons.
The company also anticipates adding more heavy rare earth separation capabilities at its open-pit Mountain Pass mining and processing facility in southeastern California, reinforcing its position as a national strategic asset where high-purity rare earth materials are extracted, separated, and refined all in one location.
“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” said MP Materials Chairman and CEO James Litinsky. “We are proud to enter into this transformational public-private partnership and are deeply grateful to President [Donald] Trump, our partners at the Pentagon, and our employees, customers, and stakeholders for their unwavering support and dedication.”
The announcement comes more than three months after China’s Ministry of Commerce and General Administration of Customs jointly announced export controls on seven rare earth elements and magnets used in the defense, energy, and automotive sectors, including light and heavy rare earths, as well as high-performance permanent magnets containing dysprosium or terbium.
That announcement was made in response to sweeping tariffs imposed by Trump, which at the time included a 35 percent levy on most goods imported from China.
By Wesley Brown
