US-based rare earth producer MP Materials has entered a public-private partnership with the US Department of Defense (DoD) to advance the domestic rare earth magnet supply chain and lessen reliance on foreign sources.
The US is almost entirely dependent on imports for rare earth magnet components.
The new strategic partnership aims to stimulate domestic production, bolster industrial resilience and secure essential supply chains for industries poised for growth and future dual-use technologies.
The collaboration includes a multibillion-dollar investment package and long-term commitments from the DoD for the construction of MP Materials' second domestic magnet manufacturing facility, known as the 10X Facility.
The 10X Facility, whose location is yet to be determined, will serve both defence and commercial clients.
With an estimated manufacturing capacity of 10,000 tonnes (t), the facility is expected to begin commissioning in 2028.
MP Materials also plans to enhance its heavy rare earth separation capabilities at its Mountain Pass facility in California, where high-purity rare earth materials are extracted, separated and refined at a single site.
The company is also commissioning a magnetics facility in Texas, named Independence, which will anchor its downstream capabilities.
MP Materials founder, chairman and CEO James Litinsky stated: “This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence.
“We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon and our employees, customers and stakeholders for their unwavering support and dedication.”
Under the partnership, the DoD has committed to a ten-year price floor of $110 per kg for MP Materials' neodymium-praseodymium (NdPr) products, ensuring stable cash flow and protection from market volatility.
The DoD has also guaranteed to purchase all magnets produced at the 10X Facility for ten years post-construction.
To support the development of the 10X Facility, MP Materials has secured a commitment letter for $1bn in financing from JPMorgan Chase Funding and Goldman Sachs Bank.
The company also expects to receive a $150m loan within 30 days from the DoD for expanding heavy rare earth separation at Mountain Pass.
The DoD will purchase $400m of a new series of convertible preferred stock in MP Materials, with the potential to become the company's largest shareholder.
This investment will be used to expand rare earths separation, processing and magnet production capacities.
In May 2025, MP Materials signed a memorandum of understanding (MOU) with the Saudi Arabian Mining Company (Maaden) to create a fully integrated, end-to-end rare earth supply chain within Saudi Arabia.
