MP Materials and U.S. Department of Defense partner to build rare earth magnet supply chain for America

The agreement includes multibillion-dollar investments and commitments to build a second U.S. magnet manufacturing facility, known as the “10X Facility”. Commissioning of the facility is expected to begin in 2028, increasing MP Materials’ total domestic rare earth magnet capacity to approximately 10,000 metric tons annually.

“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “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.”

MP Materials also plans to expand heavy rare earth separation capabilities at its existing Mountain Pass facility in California. This expansion will further strengthen the site’s position as a strategic national asset, where high-purity rare earth materials are extracted, separated, and refined in one integrated location.

The DoD has committed to a comprehensive 10-year support package comprising preferred equity, warrants, loans, and offtake agreements. One key component is a price floor of $110 per kilogram for MP Materials’ NdPr products, providing price stability and shielding the industry from market volatility.

Under the agreement, for a decade following the 10X Facility’s completion, all magnets produced at the site will be purchased by defence and commercial customers. This arrangement ensures predictable cash flows and shared commercial upside for the Company and its stakeholders.

To finance the 10X Facility, MP Materials has secured a $1.0 billion financing commitment from JPMorgan Chase Funding Inc. and Goldman Sachs Bank USA, subject to customary conditions. Additionally, the Company expects to receive a $150 million loan from the DoD within 30 days to fund the heavy rare earth separation expansion at Mountain Pass.

The Department of Defense will also invest $400 million to purchase a new series of convertible preferred stock in MP Materials, with an exercise price of $30.03 per share. The transaction, which includes an additional warrant for future share purchases, is scheduled to close on 11 July 2025.

Following this strategic investment, the DoD is set to become MP Materials’ largest shareholder. On a fully converted and exercised basis, the DoD’s holdings would represent 15% of the Company’s outstanding common stock as of 9 July 2025.

MP Materials currently operates the world’s second-largest rare earth mine at Mountain Pass and is commissioning a magnetics facility in Texas, known as Independence. Together with the new 10X Facility, these operations anchor a fully domestic, end-to-end supply chain for rare earth materials critical to national security and advanced manufacturing.