US DoD investment in MP Materials accelerates magnets and heavy rare earths

MP Materials

US DoD investment in MP Materials totals $400 million in preferred stock. US DoD investment in MP Materials also includes a warrant and offtake. The 10-year NdPr offtake sets a $110/kg floor. The package backs heavy rare earth separation and magnets.

Financing, capacity, and the 10X Facility

US DoD investment in MP Materials unlocks the 10X magnet Facility. MP secured $1 billion in bank financing for construction. The 10X site will be announced later. Commissioning is expected in 2028 under a phased ramp.

Total magnet capacity will reach 10,000 tonnes per year after start-up. Independence Texas operates at 1,000 tonnes today. It plans an expansion to 2,000 tonnes next. Therefore, 10X adds roughly 7,000 tonnes of magnets.

For ten years after start-up, DoD will ensure full magnet offtake. Sales will serve defense and commercial customers with shared upside. The price floor stabilizes revenues across market cycles.

Policy context and supply chain impact

China’s heavy rare earth export controls raise supply risk for magnets. Washington answers with domestic separation and magnet scale. MP will add heavy rare earth separation at Mountain Pass. A $150 million loan is expected to support this work.

The integrated plan reduces import dependence for NdPr and heavies. It also shortens lead times for defense platforms. As a result, OEMs gain a Western magnet source at scale. The strategy aligns capital, offtake, and policy in one package.

The Metalnomist Commentary

This deal converts industrial policy into bankable capacity growth. Execution now hinges on site selection, power contracts, and permitting. Watch separation yields and 10X ramp curves into 2028.