MP Materials (NYSE: MP) has kicked off commercial production of neodymium-praseodymium metal at its Independence facility in Texas along with trial production of neodymium-iron-boron magnets, the company announced Wednesday.
The facility in Fort Worth will use feedstock from the company’s Mountain Pass rare earth mine in California to build the first fully integrated rare earth metal, alloy and magnet manufacturing facility in the US.
MP Materials expects to produce about 1,000 tonnes of finished neodymium-iron-boron (NdFeB) magnets a year and gradual production ramp-up will begin later this year. First deliveries of the automotive-grade, sintered magnets are on track for year-end and a significant amount will go to General Motors.
“This milestone marks a major step forward in restoring a fully integrated rare earth magnet supply chain in the United States,” James Litinsky, MP Materials’ founder, chairman and CEO, said in a release.
In midday trading in New York, shares of MP Materials were up 2.5% to $21.38, giving it a market cap of about $3.5 billion.
Mountain Pass
Last year the open-pit Mountain Pass mine produced 45,000 tonnes of rare earth oxides (REO) contained in concentrate — an all-time high for primary production in the US. The company also posted a midstream production record of about 1,300 tonnes of NdPr oxide.
NdFeB magnets are essential in electric vehicles, robotics, electronics, aerospace, drones and defence systems but for decades the US has relied almost entirely on imports.
By contrast, China produced an estimated 300,000 tonnes of NdFeB magnets in 2024, up from 280,000 tonnes in 2023, according to Ellie Saklatvala, senior editor nonferrous metals at Argus, in a Jan. 15 update.
The powerful and efficient magnets are critical in the green energy transition and the development of low-carbon technologies.
Demand for rare earth permanent materials will continue to increase, forecasts commodity consultants Wood Mackenzie.
“As we move into 2025, with the improvement of the global economic condition, it is expected that the rare earth market will continue to improve,” it said in a Jan. 10 report.
Source: MINING.COM – Read More
