MP Materials Puts America Back in the Magnet Game

Daily News Article   —   Posted on February 27, 2026

(by Pippa Stevens, CNBC) – MP Materials has chosen Northlake, Texas, for its new $1.25 billion rare earth magnet manufacturing campus, the company announced Thursday, amid a rush to shore up domestic supplies of metals critical for everything from data centers and defense to personal electronics.

The facility, dubbed “10X,” will use rare earth raw materials that have been sourced and processed at MP Materials’ Mountain Pass mine in California. Mountain Pass is the only commercial-scale rare earths mine in the U.S.

Once operational, 10X will produce about 7,000 metric tons of rare earth magnets annually, bringing the company’s total production to 10,000 metric tons per year.

The company has another magnet facility in Forth Worth, Texas, which started commercial production in 2025. Total capacity is about 3,000 tons per year, with customers including General Motors and Apple.

China dominates critical minerals supply chains – including for rare earths, controlling more than 90% of processing, separation capacity, and magnet manufacturing. Last year the nation weaponized rare earths by curbing exports, shining a spotlight on chokepoints within the critical minerals supply chain.

U.S. imports of rare earth magnets fell to about 6,000 tons in 2025 amid export controls. MP Materials’ new factory could end direct import dependence. However, when including imports of end products that use rare earths magnets – including cars and phones – U.S. demand is significantly higher.

The Trump administration has announced a host of initiatives aimed at boosting domestic mining. Last year, the Defense Department took a $400 million stake in MP Materials, while also guaranteeing a minimum price of $110 per kilogram for 10 years for neodymium-praseodymium oxide, which is used to make magnets. All of 10X’s output is currently committed to the Pentagon for 10 years as part of the previously announced deal. That said, there is opportunity for commercial customers to use the material with the DOD’s agreement.

“We are advancing key objectives under our public-private partnership with the Department of War and accelerating America’s rare earth and magnet independence with an uncompromising focus on speed, execution, and delivery,” said MP Materials founder and CEO James Litinsky.

The factory is expected to begin production in 2028 and create 1,500 direct manufacturing and engineering jobs at the site.

“The Chinese Communist Party represents the most acute national security threat to the United States, yet we remain dependent on the CCP for critical minerals,” Senator Ted Cruz (R-Texas) said in a statement. “MP Materials is building the infrastructure needed to undo that dependence and bolster American national security,” he added.

Published at CNBC on Feb. 26, 2026. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.



Background

Rare earth magnets ...are essential components in many modern products due to their exceptional strength in compact sizes.  Here is a list of common products that require rare earth magnets for their production and functionality:

  • Essential for F-35 fighter jets, which use over 900 pounds of rare earth elements, as well as Predator drones and radar systems.
  • Used in military laser technology, night vision, and satellite communications - and much more for defense.
  • Electric vehicles (EVs) and hybrid vehicles — Used in high-efficiency permanent magnet motors for propulsion (e.g., Tesla models and many others rely on neodymium-based magnets).
  • Wind turbines — Permanent magnet generators use large amounts of neodymium (often hundreds of kg per turbine) for efficient energy conversion.
  • Smartphones and tablets — Tiny magnets in speakers, vibration motors (haptics), and sometimes cameras or sensors.
  • Loudspeakers and headphones/earbuds — For high-quality audio drivers and compact design.
  • Computer hard disk drives (HDDs) — In spindle motors and read/write head actuators.
  • MRI scanners and other medical imaging equipment — For powerful, stable magnetic fields.
  • Cordless power tools (e.g., drills, saws) — In high-performance permanent magnet motors.
  • Electric motors in appliances — Such as those in washing machines, refrigerators, air conditioners, or vacuum cleaners (especially energy-efficient models).
  • Audio equipment — Including microphones and professional speakers.
  • Bicycle dynamos and electric bicycles/scooters — For generators and motors.
  • Hearing aids and certain pacemakers — Compact, reliable magnets.
  • Jet aircraft and drones — In various motors, actuators, and systems.
  • Fishing reel brakes and certain consumer gadgets — For precise control.

These magnets are critical in renewable energy, consumer electronics, automotive, medical, and defense sectors. Many "green tech" products depend heavily on them for efficiency and miniaturization. Without rare earth magnets, alternatives often result in larger, less efficient, or heavier designs. (from a Feb. 26 Grok query)

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