US could limit dependence on China for rare earths within three years: MP Materials

The US could slash its dependence on rare earth imports from China before the end of the decade as domestic production capacity scales up and new partnerships take hold, according to US-based rare earths producer MP Materials Corp.

"We will have a significant magnet capacity online" within three years, Matt Sloustcher, MP Materials' executive vice president for corporate affairs and chief communications officer, said Dec. 15 at a critical minerals event hosted by the Center for Strategic and International Studies.

The timeline reflects accelerating US efforts to secure critical mineral supply chains through strategic partnerships with allied countries, domestic production incentives and increased government stakes in companies critical to building mineral supply chains outside of China.

China imposed export controls on rare earths this year, pushing some countries to seek alternative sources.

China dominates both mining and processing of these materials, which are essential for electric vehicle motors, defense equipment, consumer electronics and robotics. The country's mined production of rare earths comprised just over 69% of the global total in 2024, according to the US Geological Survey. China's rare earths industry supplies over 90% of the world's high-quality smelting and separation products, according to China Rare Earth Resources and Technology.

Greater US rare earth independence could reduce supply chain vulnerabilities while potentially reshaping pricing dynamics in the global rare earth market.

"We are at a cusp of starting commercial magnet production at our existing facility at Fort Worth for General Motors," Sloustcher said, referring to MP Materials' facility in Texas. "And as we scale that up and add up capacity for Apple, and we embark on production at our second facility — and others will start to invest as well — we can take that issue [of China's rare earth dominance] off the table."

MP Materials began construction on its Fort Worth facility in April 2022, marking a critical step toward establishing the first fully integrated US rare earth supply chain from mining through magnet production. The company's facility at Mountain Pass, California, represents the only US rare earth mining operation, but the addition of downstream processing and magnet manufacturing capabilities would complete the domestic value chain.

The Fort Worth facility will initially serve General Motors under a 2021 supply agreement covering rare earth magnets for electric motors. MP Materials plans to expand capacity to serve Apple and establish a second production facility as demand grows from the EV and consumer electronics sectors.

"Our vision at MP Materials has always been to restore full rare earth supply chain in America," Sloustcher said, adding that this includes, metal and magnet production, and recycling.

The US government has supported domestic rare earth development through critical mineral agreements signed since Oct. 25 with Australia, Japan and Thailand, focusing on capital development for mining, refining and stockpiling operations. These partnerships aim to create alternative supply sources outside China's control while providing price support mechanisms and permitting reforms to accelerate project development.

Additionally, the US Department of Defense entered July 10 into a multibillion-dollar public-private partnership with MP Materials to build a secure, end-to-end domestic rare earths supply chain.