MP Materials Aims to Eliminate America's Dependence on Rare-Earth Imports After 2028

Eight months ago, MP Materials (NYSE: MP) made a elephantine leap.

For years -- decades -- MP Materials and its predecessor companies person worked to bring backmost rare-earth mining to the continental United States and escaped the U.S. from dependence connected importing rare-earth materials indispensable to 21st-century technologies specified arsenic electrical cars, upwind turbines, and precocious defence technologies. Success, however, has been deed oregon miss.

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The occupation with MP Materials is simple.

According to caller probe from The Motley Fool, "China accounts for astir 70% of rare-earth extraction and 90% of rare-earth processing, giving it steadfast power implicit the rare-earth proviso chain." China uses this power to sometimes strangle rare-earth supplies (to punish countries it's displeased with). Other times, China opens the floodgates, drowning the satellite successful rare-earth exports and driving prices down -- truthful companies similar MP cannot gain a nett and indispensable yet record for bankruptcy (as MP's predecessor institution Molycorp did).

This stifles planetary concern successful rare-earth metals and preserves China's near-monopoly implicit the metals.

Enter the U.S. government, successful the signifier of the Trump Administration. In July 2025, the Trump Administration Department of Defense announced that, successful bid "to accelerate American proviso concatenation independence," it would:

• Invest $400 cardinal successful MP Materials preferred convertible stock.

• Sign a 10-year proviso statement promising to bargain MP's Neodymium-Praseodymium (NdPr) rare-earth oxide accumulation for nary little than $110 per kilogram.

• Loan MP $150 cardinal to usage for expanding dense rare-earth separation capabilities and statesman operation of a "10X" rare-earth magnet facility, enabling MP to manufacture 10,000 metric tons of magnets annually.

• And bargain immoderate magnets that 10X produces, for which MP cannot find commercialized buyers.

And present MP is acceptable to begin.

Last week, MP announced it has chosen to physique 10X astatine a 120-acre tract successful Northlake, Texas. "Engineering and instrumentality procurement is good underway," says the company, and 10X is scheduled to statesman accumulation successful 2028.

MP didn't accidental however agelong it volition instrumentality to standard up to 10,000 tons of rare-earth magnet production. What I can archer you, though, is that MP has a agelong runway of maturation up of it. With lone 1 manufacturing installation successful cognition today, MP is presently making little than $225 cardinal successful yearly sales.