MP Materials has decided to establish a $1.25 billion rare earth magnet manufacturing facility in Northlake, Texas, as announced by the company on Thursday. This strategic development comes in response to the increasing need to bolster domestic metal supplies essential for various sectors, including data centers, defense, and personal electronics.
The new facility, named "10X," will be utilizing rare earth raw materials sourced from MP Materials' Mountain Pass mine located in California. This mine stands out as the only commercial-scale rare earth mining operation within the United States.
Once operational, the 10X campus will produce approximately 7,000 metric tons of rare earth magnets each year, thereby raising the company's total production to 10,000 metric tons annually.
MP Materials already operates another magnet production facility in Fort Worth, Texas, which commenced commercial activities in 2025. This site has a production capacity of about 3,000 metric tons annually, serving notable clients such as General Motors and Apple.
Presently, China holds a predominant position in the supply chains of critical minerals, particularly rare earths, exerting control over more than 90% of their processing, separation, and magnet manufacturing capacities. In a move that highlighted weaknesses in the critical minerals supply chain, China recently restricted rare earth exports. This move prompted a heightened focus on these existing bottlenecks.