2025-07-11
MP Materials said on July 10 that it has reached a multi-billion dollar public-private partnership agreement with the US Department of Defense. The deal will make the US Department of Defense the company’s largest shareholder after acquiring preferred shares worth $400 million. The investment is part of a broader investment plan and long-term strategic commitment by the federal government.
MP Materials, the only rare earth element producer in the United States, plans to build a second magnet manufacturing plant at an unnamed location. The plant, called the “10X plant”, is expected to be operational in 2028, when the company’s total magnet production capacity will reach approximately 10,000 tons/year.
The agreement contains several key commitments. The US Department of Defense has signed a 10-year offtake agreement that sets a price floor of $110 per kilogram for neodymium materials. The agreement also guarantees that magnets produced by the new 10X plant will be 100% used for defense and commercial purposes within ten years of commissioning. MP Materials currently operates the world’s second-largest rare earth mine at Mountain Pass, which started production in 2017 and refining work began in 2023. The company plans to start supplying rare earth magnets to General Motors by the end of the year.
