Highlights
- MP Materials begins trial production of NdFeB magnets.
- Aims to break China’s 90% control of rare earth element processing.
- Mountain Pass operation achieves record 45,000 metric tons of rare earth oxide production in 2024.
- Full-scale magnet production expected by late 2025.
- Company seeks to create a fully integrated US rare earth supply chain.
- Supported by federal investment and strategic partnerships with companies like General Motors.
MP Materials’ latest press release (opens in a new tab) touts a major breakthrough in rebuilding the U.S. rare earth magnet supply chain, but what it doesn’t say is just as important as what it does. While the company claims to have begun producing neodymium-praseodymium (NdPr) metal and trial production of NdFeB magnets, key details remain conspicuously absent. The announcement declares that MP is reviving domestic magnet production for the first time in decades, achieving record-breaking rare earth oxide (REO) output at Mountain Pass, and securing General Motors as a key customer. It also lays out a timeline with full-scale magnet production expected to ramp up in late 2025, an aggressive and promising target. Some serious advancements, given the People’s Republic of China controls 90% of rare earth element processing.
As Rare Earth Exchange reported, the operation has commenced commercial production of NdPr metal and trial production of automotive-grade NdFeB magnets at the Fort Worth facility, which we have already covered.
The facility aims to produce 1,000 metric tons of rare earth magnets annually, starting gradual production ramp in late 2025. Plus, the Mountain Pass operation broke records in 2024, producing over 45,000 metric tons of rare earth oxides.
MP Materials is positioned as the only scaled U.S. rare earth mining operation. Thus, the prospects of the national treasure trove status.
This latest press release carefully avoids confirming whether commercial-grade NdFeB magnets are actually being produced. “Trial production” is a vague term that could mean anything from laboratory-scale prototypes to early-stage manufacturing riddled with technical hurdles. There’s no mention of production yields, quality assurance benchmarks, or any real indication that MP has overcome the notoriously complex process of sintering high-performance magnets.
On the other hand, based on Rare Earth Exchange’s interaction with experts in the field not willing to be named, some of the executives at MP Materials are known for serious execution—a good data point.
While we don’t yet know if the magnets are ready for prime time applications, the fact that General Motors signs off on the press release and positive data points from experts in the field bode well for MP Materials.
What about supply chain realities? The announcement boasts about Mountain Pass’ record production but stops short of confirming whether all key steps—especially the crucial refining and alloying processes—are happening domestically in a sustained manner. For years, U.S. rare earth feedstock has quietly made its way to China for final processing. At least for MP Materials, that is to be phased out as the latest contract with partially state-owned Shenghe Resources will end soon.
What about heavy rare earth elements (HREEs) like dysprosium (Dy) and terbium (Tb)—both essential for high-performance magnets used in electric vehicles and defense applications? How robust is the potential deposit? The Mountain Pass Mine does contain heavy rare earth elements. The mine’s rock contains an average of 7–8% rare earth elements, which is high by industry standards. The mine also has plans to process heavy rare earth elements.
China overwhelmingly dominates the production of these elements. If MP Materials doesn’t have a reliable domestic or allied supply for Dy and Tb, then its “fully integrated” U.S. supply chain remains a challenge.
The economic viability of MP’s venture is also left unaddressed. China’s rare earth industry is heavily subsidized, giving it a massive cost advantage. The release provides no insight into how MP Materials plans to compete against state-backed Chinese manufacturers who benefit from lower costs and entrenched global dominance. Will MP’s magnets be price-competitive in the global market, or will they rely on government contracts and subsidies to stay afloat?
This is why MP Materials deserves support as a national treasure trove. The group has made serious investments in U.S., and for that matter, North American and worldwide rare earth resilience. Rare Earth Exchanges suggests, frankly, that an industrial policy is needed more than what either Biden or the current Trump administration proposes, despite the latter’s urgency for energy “dominance” proclamations.
Given Washington’s increasing push to secure a domestic rare earth supply chain, it’s almost certain that MP Materials will receive more federal backing. In 2022, the mining operation received $35 million (opens in a new tab) to build a facility to process heavy rare earth elements (HREE) at the production site. This project was to help establish the first processing and separation facility of its kind for HREEs in support of both defense and commercial applications in the United States.
At the end of the day, this latest announcement signals progress but not independence as of yet. We have a way to go. MP Materials is making moves, but the U.S. rare earth supply chain remains fragile until it proves it can mass-produce high-quality magnets, eliminate reliance on Chinese processing, and compete on cost. The real test isn’t just whether MP can make magnets or break China’s chokehold on the industry for good. The company and others in the emerging ecosystem deserve more state-backed support from the Trump administration for that purpose.
But will ideological blinders impede the necessary advancement?
Frankly, it’s necessary to expedite advancement of resilience in the supply chain. Otherwise, China will continue to maintain total dominance over rare earth elements and many critical minerals. This exposes U.S and for that matter, the entire West to shocking levels of economic vulnerability. Our political and business leaders have decided to kick the can down the road for years now. Now, talk is cheap, and we’re monitoring the situation carefully.
Daniel
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