MP Materials Corp. recently announced a strategic public-private partnership with the United States Department of Defense (DoD) to accelerate the development of a fully domestic rare earth magnet supply chain. This collaboration is designed to reduce US reliance on foreign sources and strengthen industrial resilience in critical technologies, including electric vehicles (EVs).
Rare earth magnets are essential components in high-performance EV traction motors, electronics, and robotics for manufacturing. MP Materials’ expansion supports US leadership in EV manufacturing by securing access to the permanent magnets that enable lightweight, high-efficiency electric drivetrains.
As part of the partnership, the DoD will provide a multibillion-dollar package of long-term investments and commitments. MP Materials will construct its second American magnet manufacturing facility, known as the “10X Facility,” at a location to be announced.
Once commissioned in 2028, the facility is expected to bring MP’s total US rare earth magnet production capacity to approximately 10,000 metric tons annually, serving defense and commercial markets.
The company also plans to expand its heavy rare earth separation capabilities at its Mountain Pass facility in California. Mountain Pass remains the only US site where rare earth materials are mined, refined, and separated at scale in one location. This enhancement further strengthens MP’s position as a national strategic asset and a vertically integrated producer.
The agreement includes a comprehensive ten-year package of financing and commercial terms:
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The DoD will purchase $400 million of newly created convertible preferred stock, and receive warrants to acquire additional shares. Upon conversion and exercise, the DoD would hold approximately 15% of MP Materials’ outstanding shares as of July 9, 2025.
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DoD has committed to a price floor of $110 per kilogram for MP’s NdPr products and has guaranteed offtake for 100% of magnets produced at the 10X Facility for ten years following construction.
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MP Materials has secured a $1.0 billion commitment from JPMorgan Chase and Goldman Sachs to support construction of the 10X Facility, and expects to receive a $150 million loan from the DoD to expand separation capabilities at Mountain Pass.
In parallel, MP Materials is commissioning its first US magnetics facility, known as Independence, in Texas. Together, these facilities will anchor a domestic rare earth ecosystem capable of supplying magnets for EVs, smartphones, robotics, and defense systems.
Filed Under: Technology News