MP Materials to Ship GM Magnets from Fort Worth Plant
MP Materials begins commercial production of neodymium-iron-boron magnets in Alliance, Texas, for General Motors electric vehicles.
Key points
- MP Materials starts commercial magnet production at its 250,000-square-foot Alliance, Texas facility.
- General Motors will use these domestically produced magnets in its electric vehicles starting later this year.
- The company plans to build a 1.2-million-square-foot complex in Northlake, aiming for 2,000 jobs and one million daily magnets.
MP Materials has commenced commercial-scale production of neodymium-iron-boron permanent magnets at its Independence facility in Alliance, Texas. The 250,000-square-foot complex converts refined rare earths from the company’s Mountain Pass mine in California into high-performance magnets, a critical component for electric vehicle drivetrains. General Motors is the foundational partner, with magnet shipments scheduled to begin later this year.
This production marks a significant shift in supply chain strategy for the automotive sector. Following pandemic-era disruptions and semiconductor shortages, General Motors moved away from lowest-cost global sourcing toward a “buy-where-you-build” approach. Shilpan Amin, GM’s global chief procurement and supply chain officer, identified magnets and heavy rare earths as major gaps in the domestic supply chain that MP Materials has now filled.
Mountain Pass mine rebuilds US industry
The Mountain Pass deposit, discovered in 1949, was once a primary global supplier of rare earths before production ceded to China due to underinvestment and ownership changes. MP Materials acquired the mine out of bankruptcy in 2017 when it employed only eight workers. Under CEO Jim Litinsky, the company rebuilt the site into the foundation of a renewed U.S. rare-earth industry, challenging the long-held view that American operations could not compete in this sector.
The company’s expansion in Fort Worth is supported by local tax incentives granted in 2022. This financial support facilitated the construction of both the manufacturing facility and the corporate headquarters. MP Materials is currently constructing a mega-complex on a 120-acre site in Northlake, which will encompass 1.2 million square feet of additional industrial space.
Northlake expansion targets daily output
At full capacity, the company expects to employ upwards of 2,000 people and produce one million magnets per day. This daily output volume is designed to meet the growing demand for permanent magnets in electric vehicles and other high-performance applications. The integration of domestic mining, processing, and manufacturing creates a closed-loop supply chain within the United States.
Fort Worth Inc. reported that the collaboration between MP Materials and General Motors exemplifies the broader trend of securing critical mineral supplies closer to the point of use. The Alliance facility handles all downstream steps, including alloying, powder production, sintering, machining, and testing, ensuring consistent quality and reliability for automotive applications.
