MP Materials operates the Mountain Pass mine in California — the only active rare earth mine in the US — and in July 2025 unveiled a landmark public-private partnership with the Department of Defense to build a vertically integrated rare earth magnet supply chain. The Independence facility in Fort Worth, Texas, will produce 1,000 metric tonnes per year of rare earth metals, alloys, and finished NdFeB permanent magnets, with General Motors already committed as an offtake customer. MP Materials' stock surged nearly 400% in 2025 as geopolitical urgency mounted.
China currently controls approximately 90% of global rare earth processing and 92% of rare earth magnet production. These magnets are essential components in EV motors, wind turbine generators, missile guidance systems, fighter jet actuators, and satellite reaction wheels. When China restricted rare earth exports in 2025 as a trade countermeasure, the vulnerability became acutely visible. Lynas Rare Earths is building a DOD-funded $120 million heavy rare earth separation facility in the US, while USA Rare Earth is developing processing capabilities at its Roundtop project in Texas.
The strategic significance extends beyond supply security. Rare earth magnets are a critical chokepoint in the energy transition — every EV needs 2-5 kg of NdFeB magnets, and every offshore wind turbine needs 600+ kg. Without domestic processing, the US clean energy transition depends on Chinese supply chains. The MP Materials-DOD partnership represents the most aggressive move to date toward rare earth independence, though closing the full processing gap will require years of scaling and workforce development.