US Ramps Up Rare Earth Magnet Production to Reduce Dependence on China

The United States is taking decisive steps to strengthen its domestic supply of rare earth magnets, critical materials used in electric vehicles, defence systems, and consumer electronics. 

With China currently controlling around 90% of global output, the US government and private sector are investing heavily to establish an independent, secure, and sustainable production base.

US Manufacturing and Investment Drive

Leading the charge are Noveon Magnetics and MP Materials, both spearheading rare earth magnet production within the country. Noveon Magnetics recently inaugurated its state-of-the-art facility in Texas, symbolising a major milestone in America’s bid for supply chain independence. 

MP Materials, meanwhile, secured a $400 million equity investment and long-term price floor support from the US Department of Defence to ensure stable operations and incentivise production for at least 10 years.

MP Materials is also building a second manufacturing plant, expected to commence operations by 2028. Under a strategic agreement, the US government has committed to purchasing all its magnets for a decade, ensuring commercial sustainability and consistent demand.

Policy, Geopolitics, and Supply Chain Pressure

China’s export restrictions in 2025 on seven critical rare earth elements sent shockwaves through global industries reliant on high-performance magnets. While ongoing trade negotiations between the US and China may result in temporary relief, the disruptions reinforced the urgency of developing domestic supply chains. 

American policymakers and industry leaders are now focused on ensuring long-term independence from China’s dominant position.

Read More:India Grapples with Rare Earth Production Amid China’s Export Curbs!

Strategic Partnerships and Magnet Recycling

Beyond new production facilities, US companies are forming international alliances and expanding into recycling technologies. REalloys Inc. has joined forces with Japan’s JOGMEC to strengthen cross-border cooperation in magnet materials, while Cyclic Materials has signed decade-long contracts to recycle manufacturing byproducts. These initiatives contribute to a circular economy, enhancing sustainability and reducing dependency on new mining operations.

Conclusion

The US rare earth magnet initiative represents a strategic national priority to mitigate geopolitical risk and foster industrial self-reliance. With strong government backing, private capital, and global partnerships, the country is laying the foundation for a more resilient and sustainable magnet supply network, reducing vulnerability to external shocks and foreign dependency.

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