Federal News
DoD Supports MP Materials Texas Magnet Facility
March 22, 2026
MP Materials, the sole major U.S. rare earths producer, is advancing a significant expansion with a 10,000-ton-per-year magnet manufacturing facility in Texas scheduled for 2028. This development is backed by a substantial $400 million Department of Defense contract, underscoring the strategic importance of securing domestic rare earth supply chains amid national security concerns and geopolitical tensions. Additionally, MP Materials has secured a $500 million long-term agreement with Apple for recycled magnets, highlighting growing commercial demand alongside defense priorities.
- Why this matters: The DoD contract signals strong federal commitment to strengthening domestic rare earth production critical for defense and clean technology applications.
- Procurement professionals should note the increasing role of rare earth materials in defense supply chains and the potential for related contracting opportunities.
- Industry stakeholders can anticipate expanded demand for rare earth processing and magnet manufacturing capabilities, especially in Texas.
- Investors and contractors should consider the implications of long-term partnerships between government and private sector firms like MP Materials in securing strategic materials.
Agencies
United States Department of Defense, Pentagon
Vendors
MP Materials, Kadensa Capital, UBS Group AG, Vanguard Group Inc, BlackRock, Inc.
Contracts
$400 million, $500 million