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MP Materials Granted $58.5 Million to Boost U.S. Rare Earth Magnet Manufacturing

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MP Materials has been granted a $58.5 million award to enhance the development of the first fully-integrated rare earth magnet

MP Materials has been granted a $58.5 million award to enhance the development of the first fully-integrated rare earth magnet manufacturing facility in the United States. The allocation of the Section 48C Advanced Energy Project tax credit was given by the IRS and Treasury after a rigorous evaluation process conducted by the Department of Energy. This process assessed approximately 250 projects for their technical and commercial viability as well as their environmental and community impact.

Neodymium-iron-boron (NdFeB) magnets are the world’s most powerful and efficient permanent magnets. They are an indispensable component found in the electric motors and generators that power hybrid and electric vehicles, robots, wind turbines, drones, electronics, and critical defense systems. Global demand is expected to triple by 2035.

MP Materials began constructing its Fort Worth, Texas, manufacturing facility in April 2022. The company is currently producing magnet precursor materials in a North American pilot facility. It expects to commence commercial production of precursor materials in Fort Worth this summer and finished magnets by late 2025. MP will supply these products to General Motors, its foundational customer, to support its North American EV production.

MP will source the factory’s raw material inputs from Mountain Pass, California, where MP owns and operates America’s only scaled and operational rare earth mine and separations facility. At the factory, NdPr oxide produced at Mountain Pass will be reduced to NdPr metal and converted to NdFeB alloy and finished magnets, delivering an end-to-end supply chain with integrated recycling and world-class sustainability.

According to a Section 232 investigation completed by the Department of Commerce in 2022, sintered NdFeB magnets are “required for critical infrastructure” and “irreplaceable in key defense applications,” yet the U.S. is “essentially one hundred percent dependent on imports,” posing a serious national security risk. More than 90% of the world’s NdFeB magnets are produced in China.

SOURCE: MP Materials

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