PROJECT WATCH

MP Materials 10X: Building America's Magnet Supply

Rare-earth magnets help power electric motors and defense technology. MP Materials is building a new factory in Northlake, Texas, with a federal partnership designed to strengthen domestic supply. This report separates construction progress from planned capacity, financial support and production targets.[B][C]

By Dora C. Winters

MP Materials' Northlake campus is already included in AFT's manufacturing database. This report examines the same project and adds no investment or jobs to AFT's totals. See the Northlake project record.

Sources checked: October 10, 2026

Key facts

$1.25B+

Planned investment

MP’s announced investment for the Northlake campus.

Sources: [A] MP Materials, Northlake site-selection announcement, February 26, 2026; [F] Office of the Texas Governor, Northlake expansion announcement, February 26, 2026

1,500+

Direct jobs planned

Manufacturing and engineering positions at the site.

Source: [A] MP Materials, Northlake site-selection announcement, February 26, 2026

Under construction

Project status

MP confirmed construction progress in August 2026.

Source: [C] MP Materials, Second Quarter 2026 Results, August 6, 2026

2028

Commissioning target

Start-up and equipment testing; not full production.

Sources: [A] MP Materials, Northlake site-selection announcement, February 26, 2026; [D] MP Materials, 2025 Form 10-K, filed February 26, 2026

7,000 tons/year

Planned Northlake capacity

Metric tons of magnets annually after the plant scales.

Source: [E] MP Materials, First Quarter 2026 Form 10-Q

About $200M

State and local incentives

Grants and tax benefits spread over more than a decade.

Source: [A] MP Materials, Northlake site-selection announcement, February 26, 2026

Bottom line

Northlake has moved into construction, with commissioning targeted for 2028.[A][C] Its federal backing includes an agreement covering future magnet output.[B] The test ahead is whether MP can bring the factory into production and scale it to the planned capacity. Financial support and announced jobs do not establish that those outcomes have already been delivered.

What Northlake will make

The campus will produce neodymium-iron-boron magnets, commonly called NdFeB magnets. Denton County describes the facility as a manufacturing investment supporting advanced technology industries.[I]

MP's first-quarter 2026 filing sets out two distinct capacity targets: about 7,000 metric tons of magnets a year at Northlake, plus 3,000 at its separate Independence facility in Fort Worth. The combined target is 10,000 metric tons annually. These are planned capacities, not current Northlake output.[E]

The distinction is central to this report: the new Northlake factory and the existing Fort Worth operation are separate facilities.

What has been documented

The sources reviewed do not establish a percentage of construction completed or a cumulative Northlake construction-spending total. AFT does not estimate either from the investment announcement.

What the Pentagon partnership covers

MP announced the partnership in July 2025. Its SEC filing describes several different forms of support:

These arrangements support different parts of MP's business. They are not a single payment for the Northlake factory, and AFT does not add them together as facility investment.

Financing announcements need dates

The July 2025 announcement included a $1 billion bank financing commitment for developing 10X.[G] MP's later annual report says that commitment expired undrawn on August 26, 2025, following other fundraising and a revolving credit facility. It should not be presented as a current, drawn $1 billion construction loan. The same filing identifies a separate $150 million federal loan for samarium separation at Mountain Pass, California—not Northlake construction.[D]

This is why an announced financing package and money spent building a factory must be kept separate.

Texas and local support

Texas announced two grants: $12,880,500 from the Texas Enterprise Fund for campus corporate operations, and $53,457,500 from the Texas Semiconductor Innovation Fund for the manufacturing facility. Together, those announced grants total $66,338,000.[F]

MP described roughly $200 million in combined state and local incentives over more than a decade, including grants, abatements and exemptions.[A] Tax benefits over time are different from cash paid upfront. The public announcements reviewed do not establish that the whole incentive package has been disbursed. AFT has not reviewed all underlying incentive contracts or their payment schedules.

Future customers, future production

In July 2026, MP launched Project Swarm, allowing U.S. and allied drone and motor manufacturers to reserve future Northlake production capacity. The company expressly distinguishes those reservations from binding purchase commitments made today.[H]

MP's August release reported subscription agreements with multiple participants.[C] Those agreements signal customer interest, but they do not demonstrate magnets being shipped from Northlake.

What to watch next

Commissioning means bringing equipment and processes into service. A commissioning target alone does not specify when a factory will reach full output.

Frequently asked questions

Sources

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