By Rob Curran
MP Materials has launched domestic production of a rare-earth magnet it intends to mass produce for General Motors and other U.S. customers, in what it frames as a move towards import substitution of the critical technology components.
The Fort Worth mining-and-metals processing firm said its facility in the North Central Texas city is producing neodymium-praseodymium (NdPr) metal, and has launched trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets.
"This milestone marks a major step forward in restoring a fully integrated rare earth magnet supply chain in the United States," said Chairman and Chief Executive James Litinsky in a statement. The metals used to produce the magnets come from MP Materials' rare-earth mine and processing plant in Mountain Pass, Calif.
The company said its NdFeB magnets would be among the first refined rare-earth products made in America. The U.S. imports most rare-earth metals, a family of elements that are crucial components in much modern technology, from China and other markets.
The NdFeB magnets are used in vehicles, drones, robotics, electronics, and aerospace and defense systems, the company said. As trade tensions rise, China has indicated it will use its powerful position in the rare-earth supply chain as leverage once more. In December, the Chinese Commerce Ministry said it will ban exports to the U.S. of rare-earth minerals gallium, germanium and other materials with military applications.
MP Materials' Fort Worth plant is poised to produce about 1,000 metric tons of finished NdFeB magnets a year, with a gradual production ramp beginning in late 2025, the company said. The facility will supply magnets to General Motors and other manufacturers, the company said.
General Motors struck a deal in 2021 to be the foundational customer of the Fort Worth magnetics facility in a bid to lock down the supply of permanent magnets for its fleet of EVs, including the Hummer, Silverado and Cadillac Lyriq.
Shares of MP Materials rose 2.1% to $21.30 premarket.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
January 22, 2025 08:40 ET (13:40 GMT)
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