First US Rare Earth Magnet Manufacturing Facility Begins Construction in Fort Worth

The US Las Vegas-based MP Materials is building a 200,000-square-foot rare earth magnet manufacturing facility in Fort Worth to produce rare-earth magnets and materials for electric vehicles through a long-term agreement with General Motors Corp. The components are also critical to robotics, drones, wind turbines, defense systems, and other technologies. The project will create about 150 permanent, highly skilled jobs and about 1,300 indirect jobs, the company said, and the production is expected to begin in 2023.

The company celebrated the start of construction today with James Litinsky, CEO of MP Materials, Ross Perot, Jr. chairman of The Perot Group, and Hillwood, Fort Worth Mayor Mattie Parker, and Anirvan Coomer, executive director of General Motors. Also in attendance were Westlake Mayor Laura Wheat, representatives of the regional Chamber of Commerce, officials from Texas A&M University and Tarrant County College, and many North Texas business leaders.

MP Materials is investing approximately $700 million over the next two years to fully restore the rare earth magnetic materials supply chain in the U.S. Litinsky said, "Magnets are synonymous with modern life, and rare earth magnets are what really power movement - electric cars, wind turbines, drones, robots, air cabs, and more. He is proud to make magnets in the United States."

Demand for magnets is expected to double by 2030, driven primarily by increased production of electric vehicles as the world looks to reduce its reliance on fossil fuels and rely more on electricity. Litinsky noted that restoring an intact U.S. supply chain requires strong leadership and strong political leadership.

As "the only sizeable rare earth mining and processing site in North America," MP Materials claims that the global consumption of rare earths in 2020 will be about 15 percent. Although the development of rare-earth magnets originated in the United States, there is currently no real capacity in the United States to produce these components, and the Fort Worth facility will change that. The company's plan is to refine its production there and apply these processes and technologies to a future high-volume rare earth magnet manufacturing facility.

Adriana Cruz, executive director of economic development and tourism in Texas Governor Greg Abbott's office, said, "The new rare earth magnetic materials production facility is critical to developing the domestic supply chain, supporting our technology industry and improving national security."

"It's because of innovative leaders like MP Materials that 'Made in Texas' is such a strong global brand," Cruz said, predicting that MP will bring continued attention to Texas' "burgeoning advanced manufacturing industry.

With a gradual ramp-up in production, the Alliance-based rare earth magnet manufacturing facility will have the capacity to produce approximately 1,000 tons of finished neodymium permanent magnets per year, powering approximately 500,000 electric vehicles, with room for expansion. The rare earth materials, alloys, and magnets will be used in the electric motors of more than a dozen GM models that use GM's Ultium platform.

Like semiconductors, magnets are considered the "basic building blocks of modern technology," converting electricity into motion and motion into electricity. MP Materials officials expect the Fort Worth plant to consume less than 10 percent of the annual production of rare earth materials at its Mountain Pass mine and plan to supply rare earth alloy flakes to other U.S. manufacturers to further strengthen the US supply chain.

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