[Update] MP Materials: $58.5 Million Award to Advance Rare Earth Magnet Facility

by | 2. Apr 2024 - 08:57 | Economy

The project is the first fully-integrated factory in the U.S. Production is set to start in 2025.

The domestic value chain of rare earth magnets in the United States continues to take shape. MP Materials, the operator of the only rare earth mine in the U.S., Mountain Pass, has been awarded $58.5 million by the IRS and the Treasury to advance construction of its magnet factory in Fort Worth, Texas. First announced in late 2021, the facility is planned to take feedstock from Mountain Pass and produce neodymium-iron-boron (NdFeB) magnets used in wind turbines and electric vehicle motors, for example. It is set to be the first fully-integrated rare earth mine-to-magnet facility. MP expects production of precursor metals and alloys to begin this summer and final products in late 2025. The first major off-take agreement for the magnets produced in Fort Worth has been concluded with General Motors, which aims to bolster its North American electric vehicle supply chain.

In addition to MP, German magnet manufacturer Vacuumschmelze’s U.S. subsidiary eVAC plans to finish constructing the second large-scale rare earth magnet facility in the U.S. by 2025, located in Sumter County, South Carolina.

The grant is part of a $4 billion push by the Biden-Harris Administration to build clean energy supply chains, drive investments, and secure a steady supply in critical minerals. The move was announced last week.

Photo: iStock/xiao zhou

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