**North Texas**: MP Materials is pioneering domestic production of rare-earth magnets, crucial for national security and electric vehicle industries, amid China’s dominance. Led by CEO James Litinsky, the company aims to reshape the U.S. supply chain and revive the historic Mountain Pass mine.
In a significant development for the U.S. manufacturing sector, MP Materials is poised to become the first company in a generation to produce rare-earth magnets domestically, marking a pivotal step in reshaping the country’s supply chain. The company’s operations are based in North Texas and are viewed as a strategic move amid the escalating economic rivalry with China, which currently dominates the rare-earth market, holding approximately 95% of global production.
Eight years ago, MP Materials’ CEO, James Litinsky, a Chicago hedge fund manager, found himself embroiled in a poor investment linked to the Mountain Pass Rare Earth Mine, situated at the California-Nevada border. Historically, this mine had been a leading global source of rare earth elements from the 1960s to the 1980s, particularly neodymium, an essential component for producing neodymium-iron-boron (NdFeB) magnets. These magnets play a critical role in various electrical machines, including those used in defence applications such as fighter aircraft and missile guidance systems.
Upon visiting the Mountain Pass mine in 2017, Litinsky discovered it was largely inactive; the facility was maintained by a small crew, and there were concerns about potential license revocations by federal and state authorities. Despite the bleak situation, Litinsky recognised the vital importance of rare earths, not just for the economy but also for national security. The U.S. had become increasingly reliant on imports, with 75% of its NdFeB magnet supply sourced from China in 2021, as reported by the Commerce Department.
“NdFeB magnets are essential to U.S. national security,” Litinsky was quoted as saying in The Dallas Morning News. This sense of urgency has only intensified with ongoing international tensions, prompting a strategic reassessment of the domestic supply chain.
In a bid to revive the Mountain Pass mine, Litinsky formed MP Materials and secured financial backing from private investors and the U.S. Department of Defense. His vision focused on addressing the “single point of failure” in the rare-earth supply chain that posed risks to both U.S. manufacturing and military capabilities.
To facilitate production, MP Materials chose to establish its manufacturing facility at Alliance Airport in Fort Worth, Texas. The region’s availability of skilled engineering talent, coupled with cooperative relationships with local educational institutions such as the University of Texas at Arlington and Texas A&M University, supports the company’s recruitment efforts. Currently, MP Materials employs over 100 staff members in Fort Worth and has commenced trial production of these crucial magnets.
The process of manufacturing these advanced magnets involves three primary steps: mining for neodymium, refining the mineral, and magnetising the metal, the latter of which is a highly technical procedure. While production capacity at the Fort Worth facility is expected to be limited to approximately 1,000 tons of magnets annually, this initiative represents a concerted effort to reclaim part of the rare-earth supply chain that has been largely offshored to China.
Despite the scale of MP Materials’ production being modest compared to China’s capabilities, which exceed 200,000 tons, the endeavour is already garnering interest from major corporations. For instance, General Motors has placed substantial orders for magnets as the automotive industry increasingly pivots towards electric vehicles that rely on these high-performance components.
The return of rare-earth magnet production to the United States illustrates the impact of business innovation and strategic investment in countering external economic pressures. With the first commercial production expected to start this year, MP Materials is setting the stage for a new chapter in the U.S. rare-earth landscape, forging a path toward a more resilient and self-sufficient industrial base.
Source: Noah Wire Services
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