MP Materials and U.S. Department of Defense Launch Strategic Partnership to Build Fully Domestic Rare Earth Magnet Supply Chain

The landmark public-private agreement includes a new 10,000-metric-ton magnet plant, a $150 million DoD loan, and a $400 million equity investment.

MP Materials today announced an unprecedented agreement with the U.S. Department of Defense (DoD) to build a fully American rare earth magnet supply chain, with the goal of strengthening the country's strategic independence from foreign suppliers—especially in defense and advanced technology applications.

The public-private partnership includes the construction of a new magnet manufacturing facility, named the 10X Facility, which will complement MP Materials’ current operations. The location of the plant will be announced soon, and it is scheduled to begin operations in 2028. Once operational, the company’s total rare earth magnet production capacity in the U.S. will reach 10,000 metric tons per year.

“This initiative represents a decisive action by the Trump administration to accelerate the independence of the U.S. supply chain,” said James Litinsky, founder and CEO of MP Materials. “We are proud to be part of this transformative partnership.”

100% American Rare Earths

As part of the agreement, the Department of Defense has committed to purchasing 100% of the magnets produced at the future plant for a period of 10 years, with a guaranteed minimum price of $110 per kilogram for NdPr products. This structure is designed to shield the operation from geopolitical fluctuations and ensure predictable revenue flow.

Additionally, MP Materials will receive a $150 million loan from the DoD to expand its heavy rare earth separation capabilities at its Mountain Pass facility in California, consolidating its control over the entire value chain—from extraction to final manufacturing.

Pentagon Becomes Largest Shareholder of MP Materials

The strategic investment also makes the Department of Defense the largest shareholder of MP Materials. The agreement includes the purchase of $400 million in convertible preferred shares, equivalent to 15% of the company’s common stock as of July 9, 2025.

To finance the construction of the 10X Facility, MP Materials has also secured a $1 billion funding commitment from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA.

Currently, MP Materials operates the world’s second-largest rare earth mine in Mountain Pass and a magnet plant in Texas known as Independence, with the goal of becoming a global leader in critical materials for clean technologies, electric mobility, and national defense.