MP Materials will move to revive its mothballed refining equipment at its Mountain Pass rare earths mine in California, Reuters reported Aug. 24.
The company decided to start local refining after China raised its tariffs on U.S. rare earths imports to 25% and said it will impose further 10% tariffs in September.
"The tariffs are very painful, but we remain profitable," MP Materials Co-Chairman James Litinsky said.
The U.S. Department of Defense recently asked mining companies to provide plans to develop rare earth mines and processing facilities in the U.S., as well as to detail what they need in order to get such facilities running.
MP Materials produces over 5,000 tonnes per month of rare earth-containing concentrate at Mountain Pass, which accounts for about 10% of the global market, but its concentrate goes to China to be processed.
One the refining equipment is operational, the company will target annual production of over 5,000 tonnes of neodymium and praseodymium.
The company also plans increase its workforce to about 400, from about 200.
Litinsky added that the company will also look to restart the Mountain Pass chlor-alkali facility, which will recycle wastewater and produce hydrochloric acid and caustic soda to use in the rare earths separation process, saving costs.
The company purchased the Mountain Pass mine in 2017 for US$20.5 million after former owner Molycorp Inc. went bankrupt.
MP Materials is majority owned by Chicago hedge fund JHL Capital Group and New York's QVT Financial LP, while China's Shenghe Resources Holding Co. Ltd. holds a 9.9% stake.
