MP Materials (MP) Unveils $1.25B Texas Facility and Major Automaker Partnership

Essential Highlights

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MP Materials has finalized a rare earth supply contract with a major but unnamed automotive manufacturer described as “one of America’s leading industrial and technology companies”
The contract covers neodymium-praseodymium oxide, a crucial material for electric motor manufacturing
The firm is investing over $1.25 billion to build a magnet manufacturing facility in Northlake, Texas, called “10X”
The Texas facility is expected to create more than 1,500 jobs and launch in 2028, with production capacity reaching around 10,000 metric tons of rare earth magnets annually
After a $400 million capital infusion in 2024, the Department of Defense holds a 15% stake in MP Materials

MP Materials disclosed Thursday that it has completed a rare earth supply contract with an unnamed automotive company, an announcement that came alongside fourth-quarter earnings that exceeded Wall Street expectations.

MP Materials Corp., MP

The contract covers neodymium-praseodymium oxide, a vital ingredient in electric motor production. Though the company characterized its new partner as “one of America’s leading industrial and technology companies,” MP Materials refused to identify the buyer or reveal the deal’s financial details.

CEO James Litinsky stated during the earnings call that demand across the supply chain continues to be strong. “We’re having a lot of conversations,” he said.

MP Materials already has a supply partnership with General Motors covering rare earth materials, alloys, and completed magnets, meaning this latest announcement represents the company’s second major automotive relationship.

Alongside the earnings disclosure came a major capital investment announcement. MP Materials unveiled intentions to invest more than $1.25 billion in building a rare earth magnet production facility in Northlake, Texas.

Meet 10X
MP’s next‑generation rare earth magnet campus in North Texas
10,000 tons across the $MP U.S. platform
$1.25B+ investment
1,500 engineers & manufacturing jobs
120 acres of industrial scale
Commissioning in 2028
A decade‑defining step toward American supply chain… pic.twitter.com/E8yjsDCFsn
— MP Materials (@MPMaterials) February 26, 2026

The Northlake facility, branded “10X,” extends the company’s existing Fort Worth operations, reinforcing the North Texas footprint of America’s only domestic rare earth mining operation.

The plant is slated to begin production in 2028. When operating at full capacity, it will boost MP Materials’ overall annual manufacturing capability to roughly 10,000 metric tons of rare earth magnets.

MP Materials projects the creation of more than 1,500 direct engineering and manufacturing jobs at the site. Engineering planning and equipment procurement are already underway.

Pentagon Financial Support

The Texas production facility results directly from MP Materials’ strategic partnership with the U.S. Department of Defense. In July 2024, the Pentagon purchased a 15% ownership stake in the firm through a $400 million investment.

The arrangement required that MP Materials develop a new production facility with the ability to manufacture rare earth magnets at volumes significantly exceeding present domestic output — specifically intended to reduce dependence on Chinese sources.

Rare earth magnets are utilized in vehicles, wind turbine systems, military aircraft, and missile defense technology, making them central to continuing U.S.-China trade disputes.

China’s Export Controls

Beijing enacted rare earth export controls after President Trump imposed sweeping tariffs on Chinese goods in April of the previous year. Although a trade deal was reached in June, supply chain vulnerabilities remain.

This situation has intensified the push by American companies to secure dependable domestic suppliers, with MP Materials representing the only U.S. company mining rare earths at commercial levels.

Litinsky indicated it would be “natural to conclude” that several supply agreements will result from the 10X facility once operational.

The company is currently in discussions with other entities regarding magnet supply from the Texas operation, though no further contracts have been completed.

Fourth-quarter performance surpassed analyst expectations, giving the company solid financial footing as it embarks on this major capital commitment.

MP Materials stock was trading at $59.97, down 0.15%, at the time of reporting.