MP Materials (MP) Stock Signs Mystery Automaker Deal and Plans $1.25B Texas Plant

TLDR

• MP Materials signed a large rare-earths supply deal with an unnamed automaker described as “one of America’s leading industrial and technology companies”
• The contract covers neodymium-praseodymium oxide, a key material used in motors
• MP Materials is investing over $1.25 billion in a new magnet manufacturing campus in Northlake, Texas, called “10X”
• The Texas facility is expected to create 1,500+ jobs and come online in 2028, targeting ~10,000 metric tons of rare earth magnets per year
• The Pentagon holds a 15% stake in MP Materials after a $400 million equity investment last year

MP Materials has signed a rare-earths supply contract with an unidentified automaker, the company revealed Thursday alongside fourth-quarter earnings that beat analyst estimates.

MP Materials Corp., MP

The deal covers neodymium-praseodymium oxide, a material used in electric motors. The company called the mystery buyer “one of America’s leading industrial and technology companies” but offered no further details on who it is or the size of the contract.

MP Materials already has a supply agreement with General Motors covering rare earth materials, alloys, and finished magnets, so the new deal adds a second major automaker relationship to the books.

The earnings announcement also came with a big capital commitment. MP Materials said it will invest more than $1.25 billion in a new rare-earth magnet manufacturing campus in Northlake, Texas.

The campus, called “10X,” expands on the company’s existing Fort Worth facility, making it a larger North Texas footprint for the only American producer of rare earth minerals.

The plant is expected to be operational by 2028. Once running, it will push MP Materials’ total production capacity to around 10,000 metric tons of rare earth magnets per year.

The company expects to create more than 1,500 direct manufacturing and engineering jobs at the site. Engineering and equipment procurement is already underway.

The Pentagon Connection

The Texas factory is a direct result of MP Materials’ partnership with the U.S. Department of Defense. In July 2024, the Pentagon agreed to take a 15% stake in the company in exchange for a $400 million equity investment.

That deal required MP Materials to build a new factory capable of producing rare earth magnets at a scale far beyond current U.S. output — specifically to reduce dependence on China.

Rare earth magnets are used in automobiles, wind turbines, jet fighters, and missile systems, putting them squarely in the middle of the ongoing U.S.-China trade dispute.

The China Factor

Beijing began restricting rare-earth exports after President Trump imposed steep tariffs on Chinese goods in April last year. A trade truce was reached in June, but supply uncertainty has not gone away.

That backdrop has pushed American manufacturers to seek domestic sources more urgently, and MP Materials is the only U.S. company mining rare earths at scale.

Litinsky said it would be “natural to conclude” that multiple supply deals will come out of the 10X facility once it opens.

The company is currently in talks with additional firms about magnet supply from the Texas plant, though no further deals have been announced.

Q4 earnings beat analyst expectations, giving the company a solid financial footing as it ramps up its investment cycle.

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

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