Rare earth metal in production, finished magnets in trial production.
MP Materials, the operator of the only active rare earth mine in the United States, has officially commenced commercial production at its magnet manufacturing facility in Fort Worth, Texas. The company announced that it has successfully started large-scale production of neodymium-praseodymium (NdPr) metal, a precursor material for neodymium-iron-boron (NdFeB) magnets, for which it also completed initial trial production. These magnets are critical for high-tech industries such as electric vehicles, robotics, and consumer electronics.
Once fully operational, the facility is expected to produce approximately 1,000 metric tons of finished magnets annually, produced with feedstock from its mine in Mountain Pass, California, according to the company. Among its key customers is U.S. automaker General Motors, which plans to incorporate these magnets into its electric vehicle models (we reported).
China Dominates Global Production
China currently dominates global rare earth magnet production, accounting for 90% of the market. Companies like MP Materials are working to reduce this dependency, but the challenge remains significant. In 2024, the U.S. imported approximately 7,446 tons of magnets from China, according to customs data—highlighting that a single facility cannot fully offset this imbalance. German magnet manufacturer Vacuumschmelze is another player aiming to enter the U.S. market. The company is constructing a new magnet production facility in South Carolina, scheduled for completion in late fall 2025, which will further bolster U.S. efforts to diversify its supply chain (we reported).
The entire value chain from mine to magnet is still not fully complete, however. The base alloy, in addition to rare earth elements, primarily consists of iron, with boron added to the mix. The alloy undergoes multiple processes of reshaping under pressure and heat before it is finally magnetized.
Simplified mine-to-magnet value chain.
Photo: iStock/lucky-photographer
