Magnetics Business & Technology - July/August 2024 - 24

INDUSTRY NEWS
MP Materials Awarded $58.5 Million Tax Credit for Magnet Manufacturing Plant in Fort
Worth
MP Materials' new magnet plant in Texas, slated to be key supplier to General Motors, gets tax credit
MP Materials has received a $58.5 million federal tax credit to
support the construction of its rare earth magnet manufacturing
plant in Fort Worth, Texas. The Section 48C Advanced Energy
Project tax credit allocation was issued by the IRS and Treasury
following a competitive, oversubscribed process administered
by the Department of Energy that evaluated the technical and
commercial viability and environmental and community impact
of approximately 250 projects. A similar award for a $111 million
tax credit went to an American subsidiary of Vacuumschmelze
recently for its new magnet plant in South Carolina, as reported
earlier in Magnetics Magazine.
MP Materials began constructing the facility in April 2022. It
expects to begin commercial production of precursor materials
there this summer and finished magnets by late 2025. MP will
supply these products to General Motors, its foundational customer,
to support its North American EV production. It is currently
producing magnet precursor materials in a North American pilot
facility.
MP will source the factory's raw material inputs from Mountain
Pass, California, where MP owns and operates America's only
scaled and operational rare earth mine and separations facility.
At the factory, NdPr oxide produced at Mountain Pass will be reduced
to NdPr metal and converted to NdFeB alloy and finished
magnets, delivering an end-to-end supply chain with integrated
recycling and world-class sustainability. With these aspects,
the company says that its new Texas plant will become North
24 Magnetics Business & Technology * July/August 2024
America's first fully integrated rare-earth manufacturing facility.
According to a Section 232 investigation completed by the
Department of Commerce in 2022, sintered NdFeB magnets
are " required for critical infrastructure " and " irreplaceable in key
defense applications, " yet the U.S. is " essentially one hundred
percent dependent on imports, " posing a serious national
security risk. More than 90% of the world's NdFeB magnets are
produced in China.
Neodymium-iron-boron (NdFeB) magnets are the world's most
powerful and efficient permanent magnets. They are an indispensable
component found in the electric motors and generators
that power hybrid and electric vehicles, robots, wind turbines,
drones, electronics, and critical defense systems. Global demand
is expected to triple by 2035.
For more info, see www.mpmaterials.com.
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Magnetics Business & Technology - July/August 2024

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