MP Materials Corp. (NYSE: MP) on Thursday began construction at its first rare earth metal, alloy, and magnet manufacturing facility in Fort Worth’s AllianceTexas.
The facility is touted as the first-of-its kind in the U.S., 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, located in Hillwood’s 27,000-acre mixed-use AllianceTexas, also will create around 150 high-skill jobs and 1,300 indirect jobs.
Also on Thursday, MP Materials announced that it had crafted agreement with General Motors (NYSE: GM) to produce alloy and magnets for GM’s EV programs, according to a news release.
“This new MP Materials facility is an excellent fit for the groundbreaking work being done at AllianceTexas, and it presents an incredible opportunity to bring more advanced manufacturing jobs home to the U.S. right here in Fort Worth,” Fort Worth Mayor Mattie Parker says in a statement. “Our local, state, and national economic and mobility goals require secure development of rare earth magnets, and I am proud that Fort Worth will serve as a center for our nation's focus on advancing this effort.”
The supply agreement with GM solidifies the terms of a binding agreement announced 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.
The magnetics facility in Fort Worth, says GM in a statement, “will play a key role in GM’s journey to build a secure, scalable, and sustainable EV supply chain.”
MP Materials’ Fort Worth facility will have the capacity to produce approximately 1,000 tons 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. Adamas Intelligence, an independent research firm, forecasts that global demand for NdFeB magnets will triple by 2035 on the back of rising demand for EV traction motors, wind power generators, energy efficient consumer appliances, and more.
In February, the Department of Defense awarded MP Materials $35 million to refine and separate heavy rare earth elements at the company’s Mountain Pass, California, rare earth materials production facility. MP’s Texas magnetics factory will source refined feedstock from Mountain Pass and transform it into finished products, delivering an end-to-end supply chain, including mining and refining, metal, alloy, and magnet manufacturing, and recycling.
"MP’s investment will bring hundreds of new jobs and millions in economic growth,” U.S. Rep. Kay Granger (R-Fort Worth) says. “Rare earth materials are crucial for many defense systems, and by producing these much-needed magnets, this facility will reduce our dependence on countries like China. For the sake of our national security, we must continue to increase domestic rare earth production, and I’m proud that we will do that right here in Fort Worth.”
What others are saying
“Bringing magnetics capabilities home is transformational for MP Materials and America’s supply chains. I am very proud that after a series of executive orders spanning multiple presidential administrations MP Materials is leading the restoration of the full supply chain and the revitalization of the American manufacturing spirit in our sector.”
- James Litinsky, founder, chairman, and CEO of MP Materials
“Today is an exciting day for North Texas and our entire country. MP Materials is not only bringing their state-of-the art magnetics facility to AllianceTexas, but also reshoring important next-generation manufacturing jobs to America. Securing and developing rare earth materials is one of the most important national security issues of our day, and we’re proud that AllianceTexas can partner with MP Materials to play a key role in America’s ability to power its future.”
- Ross Perot Jr., chairman of Hillwood and The Perot Group
“Rare earth magnets are critical to the energy transition and security of the United States. It is essential we manufacture these components in the United States from domestic materials sourced in an environmentally responsible manner. The people of TX-33 are prepared to support and lead this effort.”
- U.S. Rep. Marc Veasey (D-Fort Worth)
“Congratulations to MP Materials on the groundbreaking of their new magnet manufacturing facility and engineering headquarters in Fort Worth. This incredible investment will not only create more than 100 new jobs for hardworking Texans, but will also bolster the state’s supply chain in high-tech industries while solidifying Texas as a mecca for advanced manufacturing and innovation. It’s thanks to industry innovators like MP Materials that ‘Made in Texas’ continues to be the most powerful global brand.” “This new MP Materials facility is an excellent fit for the groundbreaking work being done at AllianceTexas, and it presents an incredible opportunity to bring more advanced manufacturing jobs home to the U.S. right here in Fort Worth. Our local, state, and national economic and mobility goals require secure development of rare earth magnets, and I am proud that Fort Worth will serve as a center for our nation's focus on advancing this effort.”
- Texas Gov. Greg Abbott
“The United States needs to do everything we can to end our dangerous dependence on China for rare earth elements and critical minerals across the entire supply chain. It is both significant and important that MP Materials is going beyond mining and into alloying and manufacturing, and I’m deeply proud of the role Texas is playing in these projects.”
- U.S. Senator Ted Cruz (Texas)
“When it comes to solving the energy crisis facing our nation, we need innovative and visionary solutions at the forefront. It is exciting that Texas is able to welcome another energy provider today with the groundbreaking of MP Materials’ new rare earth alloying and magnet manufacturing facility. I hope you will join me in welcoming MP Materials to our community.”
- U.S. Rep. Michael Burgess (R-Lewisville)
“Rare earth magnets are essential for U.S. economic and national security, and it is vital to our national interest that we manufacture these components at scale here at home. I applaud MP Materials for building this landmark facility in Fort Worth, and I’m pleased that Texas is at the forefront of restoring this important supply chain back to America.”
- U.S. Rep. Beth Van Duyne (R-Irving)