Dive Brief:
- Mining company MP Materials began commercial production of the rare earth metal neodymium-praseodymium at its facility in Fort Worth, Texas, according to a Jan. 22 press release. The metal will be used in electric vehicle motors and generators, along with other industries.
- The facility is also in the trial production phase of automotive-grade neodymium-iron-boron (NdFeB) magnets, with the first deliveries planned by the end of 2025.
- The Fort Worth facility will supply magnets to General Motors and other manufacturers, aiming to produce approximately 1,000 metric tons of finished magnets annually, the release stated.
Dive Insight:
In 2021, MP Materials agreed to supply GM its production output from Texas for the electric motors used in more than a dozen models using GM’s Ultium Platform. The Las Vegas-based mining company began building the Fort Worth facility in April 2022.
MP Materials received a $58.5 million tax credit in April 2024 for constructing the manufacturing facility, which will also create approximately 150 jobs and 1,300 indirect jobs.
The new plant advances on the company’s efforts to build its first fully integrated U.S. facility for rare earth metal, alloy and magnet production.
Raw materials for production will be sourced from MP Materials’ Mountain Pass mine and processing facility, which opened in 2018 in California, according to the release. Last year, the mine achieved record production of over 45,000 metric tons of rare earth oxides and 1,300 metric tons of NdPr oxide, a rare earth alloy used in NdFeB magnets.
The magnets are vital components of vehicles, drones, robotics, electronics, and aerospace and defense systems.
The U.S. has largely depended on foreign sources for these components for decades, MP Materials’ release stated. As of 2023, the U.S. imports the majority of its NdFeB magnets from China, according to the Bureau of Industry and Security.
The move to shift mineral production to the U.S. comes just as President Donald Trump says he plans to implement a 10% tariff on China-based imports as soon as Feb. 1, which could include the minerals.
The automotive industry is already preparing for the tariff impacts. For example, in December, BMW’s private equity firm invested in mining startup Phoenix Tailings, which is building a New Hampshire plant set to begin production in June.
