SMM, January 26: According to a report on the "Northern Miner" website, MP Materials recently announced that its independent facility in Texas has commenced commercial production of Pr-Nd alloy and initiated trial production of NdFeB magnets. The Fort Worth-based plant will utilize raw materials sourced from the Mountain Pass rare earth mine in California, aiming to establish an integrated US domestic production system for rare earth metals, alloys, and magnets.
MP Materials plans to produce approximately 1,000 mt of NdFeB permanent magnets annually and expects production to gradually increase in H2 this year, with the first delivery of automotive-grade sintered magnets by year-end, primarily supplying General Motors. James Litinsky, founder, president, and CEO of MP Materials, stated at a press conference that this achievement marks significant progress in rebuilding an integrated rare earth permanent magnet supply chain in the US.
NdFeB permanent magnets are critical for the production of EVs, robotics, electronics, aerospace, drones, and defense systems. Currently, US demand for such rare earth products is almost entirely reliant on imports. This move also reflects a global trend to reduce dependence on Chinese rare earths. Although the short-term impact may be limited, in the long run, it will undoubtedly affect China's rare earth export market.
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Additionally, competition in the rare earth industry is intensifying both domestically and internationally. The domestic market is facing industrial restructuring, and year-end market demand is not as strong as expected. As foreign industry chains become increasingly mature, international companies may gradually erode the market share of domestic enterprises. For domestic companies, this will be a long-term and ongoing challenge.
