MP Materials Is Investing $1.25 Billion on a U.S.-Based Rare-Earth Magnet Manufacturing Campus. Here's What Investors Need to Know About 10X.
MP Materials is moving beyond mining to manufacture magnets. Here's why.
A few weeks back, MP Materials (MP 0.09%) announced a $1.25 billion project to build a magnet manufacturing campus in Texas. It kind of passed under the radar at the time, but this is a bigger deal than the phrase "magnet manufacturing campus" might suggest. If you own MP Materials stock, or you're considering a buy, here's what you need to know about this deal. ExpandNYSE: MPMP MaterialsToday's Change(-0.09%) $-0.05Current Price$53.23Key Data PointsMarket Cap$9.5BDay's Range$50.85 - $53.5952wk Range$18.64 - $100.25Volume190KAvg Vol7.5MGross Margin-280.15% Why rare-earth magnets are a big deal These aren't just fridge magnets.
MP Materials mines and refines so-called rare-earth metals, a group of 17 elements that includes neodymium -- an essential component in neodymium-iron-boron (NdFeB) magnets, the strongest magnets known. Rare-earth minerals aren't actually all that rare. But refining them from ore requires complex, specialized facilities. According to Motley Fool Research, China is by far the dominant source of refined rare-earth metals, accounting for 71% of U.S. imports of those elements in 2025. NdFeB magnets have many uses, but they're especially critical to the motors used in electric vehicles, robots, and many types of drones.
It seems extremely likely that demand for NdFeB magnets will rise sharply in the coming years. That's why General Motors struck a long-term deal with MP Materials way back in 2021. It's also why Apple and the U.S. Department of Defense (DoD) both invested in MP Materials last year. And now, it's why MP Materials has decided it's worth building a big new magnet manufacturing facility of its own. MP Materials sees a big opportunity to diversify beyond mining MP Materials already has some magnet-making capacity in Fort Worth, Texas. The company said that this new facility, called the "10X Facility," will greatly expand its ability to manufacture NdFeB magnets, taking its total capacity to about 10,000 metric tons of NdFeB per year.
The new facility will be built on a 120-acre site in Northlake, Texas, less than 10 miles from the existing facility in Fort Worth. The project is expected to create 1,500 new jobs by the time it's up and running in 2028. The decision to build the facility was driven in part by last year's deal with the DoD, which has guaranteed that 100% of the NdFeB magnets produced by the factory will be purchased. (Put another way, DoD has promised that for the first 10 years after the 10X Facility begins operation, it will buy all the NdFeB production that isn't purchased by MP's commercial clients like GM.) Is MP Materials a good investment?
The case for MP as an investment is a bit nuanced. As Lee Samaha recently noted, there are benefits and risks to having the U.S. government as a partner, particularly given the Trump administration's penchant for occasional dramatic course changes. That said, it's clear that demand for rare-earth metals generally, and NdFeB magnets specifically, is likely to increase sharply in the coming years. Given that MP is at the forefront of building out U.S.-based production right now, it seems like a company worth a much closer look.