MP Materials has selected Northlake, Texas for its $1.25 billion “10X” rare earth magnet factory.
The company announced Thursday its selection of a 120-acre site in Northlake 10 miles from its existing Fort Worth facility to manufacture neodymium-iron-boron (NdFeB) magnets, a critical component for semiconductor manufacturing.
The campus, called “10X”, is expected to create more than 1,500 jobs.
The Las Vegas-based company operates the only rare-earth mining and processing facility in the United States at its mine in Mountain Pass, Calif.
“Hardworking Texans will advance America’s semiconductor manufacturing independence,” said Governor Greg Abbott in a statement. “This expansion in North Texas reflects the strength of our skilled and growing workforce and our advanced manufacturing expertise. Working together with innovative industry partners, Texas will accelerate America’s leadership for decades to come.”
Business Briefing
Become a business insider with the latest news.
SIGN UP
Or with:
By signing up, you agree to our Terms of Service and Privacy Policy.
MP Materials received an incentives package worth about $200 million over a decade, in the form of abatements, exceptions and grants from the state, Denton County, and the City of Northlake. This includes more than $60 million in state grants comprised of a Texas Enterprise Fund grant of $12,880,500 for the campus’ corporate space, and a Texas Semiconductor Innovation Fund grant of $53,457,500 for the manufacturing facility.
The company says it will break ground “imminently,” with engineering and equipment procurement already underway. It is expected to be commissioned in 2028.
Advertisement
The factory was one of the key components of a “public-private partnership” with the Pentagon announced in July. As part of the deal, the U.S. government plans to buy $400 million in preferred stock of MP Materials, and a 10-year warrant to purchase more would make it the company’s largest shareholder. The Department of Defense, since rebranded through an executive order as the Department of War, also made price floor and purchasing guarantees as part of the deal.
“10X is about building industrial strength at a scale the United States has not seen in generations, and the exceptional talent and infrastructure in North Texas make it possible,” said founder and CEO James Litinsky in a release.
“We are advancing key objectives under our public-private partnership with the Department of War and accelerating America’s rare earth and magnet independence with an uncompromising focus on speed, execution, and delivery.”
The factory will be part of AllianceTexas, the megasite industrial area developed by Ross Perot Jr.’s Hillwood. AllianceTexas features everything from a Taylor Sheridan film studio and housing to vast industrial and corporate campuses. The development has billions of dollars in economic impact each year.
Advertisement
“AllianceTexas continues to attract advanced manufacturing that creates jobs, diversifies our economy, and strengthens America’s supply chain,” said Perot in a release. “MP Materials has been a strong partner, and this competitive project demonstrates how city, county, and state leaders work together to secure significant new investment in North Texas.”
Related StoriesRead MoreAmerican Airlines investing $1 billion in Miami International Airport expansionThe hub is vital to the Fort Worth carrier’s operations to Latin America.JCPenney’s woman at the helm: ‘This is so important to retail and to America’The leader, who took over at the time of a big merger about a year ago, knows there’s work ahead.Fort Worth business leaders defend state takeover, say stronger schools attract employers Executives reflected on a visit to a Houston ISD elementary and urged businesspeople to play a larger role in local schools.
Read more on The Dallas Morning News
