MP Materials (NYSE: MP) saw its shares climb 2% to approximately $60 on Thursday after the company unveiled plans to build a $1.25 billion rare earth magnet manufacturing campus in Northlake, Texas, pushing its market capitalization to $10.6 billion.
The 120-acre facility, dubbed “Project 10X,” will be located less than 10 miles from the company’s existing Fort Worth magnet plant, which began operations in 2024. Once fully operational, the campus is expected to add approximately 10,000 metric tons of annual neodymium-iron-boron (NdFeB) rare earth magnet production capacity—roughly equivalent to the volume the U.S. currently imports from China each year.
“This project is about building industrial strength at a scale our nation hasn’t seen in generations,” said James Litinsky, founder and CEO of MP Materials, adding that North Texas offers “exceptional talent and infrastructure.”
Project 10X represents a cornerstone of MP Materials’ public-private partnership with the U.S. Department of War (formerly the Department of Defense), established in July 2025. Under that landmark agreement, the Department acquired a 15% equity stake in MP Materials—becoming its largest shareholder—and committed to purchasing 100% of the facility’s magnet production for 10 years at a floor price of $110 per kilogram for essential rare earth compounds.
The Las Vegas-based company, currently America’s only fully integrated rare earth producer, operates the Mountain Pass mine and processing facility in California alongside its Texas magnet manufacturing operations. The new campus will significantly expand this platform, encompassing everything from mining and refining to metallization, sintering, finished magnet production, and closed-loop recycling.
Beyond government contracts, MP Materials secured a staggering $500 billion long-term partnership with Apple in 2025 to produce rare earth magnets from recycled materials for use in Apple devices, demonstrating the company’s capabilities in sustainable manufacturing.
The company has assembled substantial funding for the expansion. JPMorgan Chase and Goldman Sachs have committed $1 billion in financing, complementing a $150 million Pentagon loan supporting Mountain Pass expansion. State and local governments have added another $200 million in grants, abatements, and exemptions over the coming decade. Engineering and equipment procurement are already underway, with commissioning targeted for 2028.
MP Materials emerged as one of 2025’s standout performers, surging more than 500% by mid-October before moderating. According to S&P Global Market Intelligence, the stock still delivered a stunning 223.8% gain for the full year. The momentum has continued into 2026, with shares adding another 13% year-to-date.
The rally reflects intensifying U.S. government efforts to secure critical mineral supply chains and reduce dependence on foreign sources. Currently, America imports approximately 80% of its rare earth requirements, with China dominating global supply. MP Materials’ position as the sole vertically integrated U.S. rare earth producer has made it a primary beneficiary of this policy shift.
The company’s heavy rare earth separation facility at Mountain Pass is scheduled to begin commissioning in 2026—a critical milestone toward achieving the 10,000-metric-ton magnet production target. Success would cement MP Materials’ transformation from mining operator to full-spectrum magnet manufacturer and U.S. rare earth champion.
However, investors face several considerations. Construction timelines and production ramp-up carry inherent risks that could affect the 2028 commissioning target. China’s continued dominance of global rare earth markets means any shifts in Beijing’s export policies or pricing strategies could impact profitability. Additionally, after the stock’s meteoric rise, valuation concerns may prompt near-term volatility.
Nevertheless, with unprecedented federal backing, long-term offtake agreements, and commercial partnerships with technology leaders, MP Materials appears well-positioned to capitalize on America’s push for supply chain independence. Whether 2026 delivers another blockbuster year will likely hinge on successful execution of the Mountain Pass separation facility and steady progress on Project 10X.
