MP Materials dysprosium and terbium production to start in 2026

MP Materials

MP Materials dysprosium and terbium production will mark a major step in US heavy rare earth independence. The company expects MP Materials dysprosium and terbium production to begin by mid-2026 at its new heavy circuit. As a result, MP Materials dysprosium and terbium production will directly support its integrated NdFeB magnet growth strategy.

Heavy rare earth circuit underpins US magnet ambitions

MP Materials will commission a heavy rare earth circuit processing about 3,000 t/yr of feedstock. The plant will produce more than 200 t/yr of dysprosium and terbium combined once fully ramped up. Because Dy and Tb are key magnet dopants, this output will secure supply for high-performance NdFeB magnets.

The ore body at Mountain Pass contains Dy and Tb in a roughly 3:1 ratio, which will shape output splits. Therefore, the heavy circuit design optimises recovery around that natural distribution. This configuration will fully enable MP’s planned 10,000 t/yr of NdFeB magnet production capacity.

MP also plans its “10X” magnet manufacturing facility, targeting commissioning in 2028. Production from that plant will be fully backed by long-term offtake agreements. This coordinated mining, separation and magnet build-out strengthens a closed-loop rare earth supply chain within North America.

Broader heavy rare earth portfolio and pricing dynamics

MP is not limiting its strategy to Dy and Tb alone. The company has committed to produce samarium oxide by 2028 as part of its portfolio. It also sees gadolinium as a logical next element to develop around the same timeframe.

Meanwhile, MP is in active talks with other feedstock providers to supplement heavy rare earth supply. This approach reduces single-asset risk and supports long-term contract reliability for downstream customers. It also positions MP as a potential hub for third-party concentrates entering US processing infrastructure.

On the light rare earth side, MP produced a record 721t of NdPr oxide in the third quarter. Output rose 21pc quarter on quarter as operations continued to ramp. The firm expects a realized NdPr price of about $61/kg in the fourth quarter, excluding its floor-price contract.

The long-term purchase agreement includes a floor of $110/kg for NdPr. The gap between the spot-linked realized price and this floor will be booked as contract income. This mechanism should support earnings stability as market prices fluctuate.

The Metalnomist Commentary

MP’s move into heavy rare earths is a pivotal development for US magnet supply chains. Dy and Tb are small-volume but high-leverage elements for EV motors and defence applications. If execution matches the roadmap, Mountain Pass plus 10X could become a cornerstone of Western magnet security, though profitability will still depend on careful management of capex, pricing floors and third-party feedstock risk.