US partners with domestic rare earth producer MP Materials against China
FOX Business’ Lauren Simonetti reports live from Texas at the only U.S. plant that turns rare earth materials into magnets.
the Trump administration The push to secure US supply chains for rare earth metals amid trade tensions with China features a public-private partnership with a domestic producer in which the Pentagon is now the largest shareholder.
In July, the War Department announced a multibillion-dollar deal that included investments and long-term purchase commitments to buy materials from MP Materials, which is involved in mining. Rare earth metals As well as processing and refining metals and manufacturing magnets.
The War Department has made a $400 million investment in MP Materials’ preferred stock, which the company is using to expand its capabilities in separating and processing rare earth elements, as well as its ability to produce magnets to better meet demand from defense and commercial customers.
Inside MP Materials’ Independence plant in Fort Worth, Texas. (Fox Business Network)
“When we have an adversary geopolitically that wants to look holistically at certain sectors and make those investments to basically make sure that the free market and capitalist economy can’t win in those sectors, then we need to partner with the government,” MP Materials CEO James Letinsky told FOX Business. “There is no other option but to establish public-private partnerships.”
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Molten material inside the MP Materials plant in Fort Worth, Texas. (Fox Business Network)
Rare earths are used in a range of applications, and are a critical component of many advanced technology products ranging from consumer-oriented devices such as smartphones and electric vehicles, as well as military equipment such as… Radars and cruise missiles.
China is the world’s leading producer of rare earths and has the largest reserves, according to a report by the US Geological Survey (USGS), and has threatened to use its influence to restrict US supplies amid trade and geopolitical tensions.
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| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| deputy | MP Materials Company | 57.51 | -2.21 |
-3.71% |
The Chinese government has taken steps to implement export controls on rare earth elements, and although it has agreed to pause some of these restrictions, it reportedly plans to block US military contractors from receiving shipments moving forward, according to The Guardian. Wall Street Journal.
Electrolysis cells at MP Materials’ Independence plant convert rare earth oxides into high-purity metals necessary for magnet production. (Fox Business Network)
“The Chinese realize they have taken over a few industries,” Letinsky said. “They wanted to grow their economy, strengthen their military, and eventually achieve dominance on the world stage. We let them, we let them — that was smart of them, but we are quick learners in this country, and now we know we need to solve this problem.”
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Machinery inside the MP Materials plant in Fort Worth, Texas. (Fox Business Network)
MP Materials is tripling the capacity of its Fort Worth plant to handle magnets for GM and Apple, while also building a new facility to meet the Pentagon’s needs.
The company previously said the new facility is expected to become operational in 2028, which is when MP Materials estimates Manufacturing ability For rare earth magnets it will reach an estimated 10,000 metric tons.
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MP Materials also plans to expand heavy rare earth separation capabilities at its facility in Mountain Pass, CaliforniaWhere rare earth materials are extracted, separated and refined.
2025-11-13 20:52:00
