Reshoring Rare Earth Magnet Manufacturing to the U.S.: The AllianceTexas Advantage

When it comes to electric vehicle production, a profound opportunity is emerging that promises to reshape the global supply chain. Key to seizing this opportunity is re-shoring critical magnetic materials to the U.S., a move that is vital for the future of electric vehicles, drones, intelligent transportation systems and the electrification of smart technologies. By creating a vertically integrated magnet manufacturing industry in America, it’s possible to build and accelerate the next generation of mobility and defense technologies and strengthen the supply chain.

Fortifying the Supply Chain

Bringing rare earth magnet manufacturing back to American soil is essential to transforming the supply chain. Rare earths serve as fundamental building blocks of the modern economy, enabling trillions of dollars in global GDP via a wide range of clean energy, information technology, defense, and industrial applications. According to the new market research report “Rare-Earth Metals Market – Global Forecast to 2026, published by MarketsandMarkets™, the rare earth market is expected to grow to $9.6 billion USD by 2026. Beyond the economic benefits, re-shoring this industry will also re-shore jobs, strengthen national security and capture a portion of the global magnetics market China is currently dominating.

Strategically Positioned for Growth

MP Materials, a leader in the production of rare earth metals, is working to close the economic and national security gap related to rare earth materials. In 2022, they commenced the construction of a first-of-its-kind rare earth magnetics factory, which set the stage for building a fully domestic U.S. supply chain. The strategic location of the factory within the AllianceTexas Mobility Innovation Zone (MIZ) speaks volumes about the need for a consistent and trusted rare earth supply chain when it comes to the future of mobility and electric car technology. Magnets are the linchpin of electric vehicle production and supply chain innovation in the U.S. According to a report by independent research firm Adamas Intelligence, the demand for magnets is projected to triple by 2035, making the factory’s presence at the MIZ pivotal to innovations in aerospace, defense, clean energy and emerging technologies. The company’s large-scale rare-earth element mine is in southeastern California. It is the only integrated rare mining and processing facility of its kind in the Western Hemisphere. MP Materials’ new location at the MIZ will enable it to convert raw materials into finished goods, restoring an end-to-end supply chain in the United States.

The MIZ ecosystem is uniquely suited to foster innovation in the mobility sector. With transportation infrastructure deeply integrated into the landscape, a highly skilled and reliable workforce, and abundant industrial capabilities, the MIZ was an ideal choice for MP Materials. Furthermore, the MIZ is zoned for heavy industrial, which streamlined the permitting process and allowed MP Materials to accelerate construction – slow permitting is a common challenge of operating in certain states in comparison to Texas.

Commencing in late 2023, MP Materials will begin producing materials at its new factory for General Motors EV program. The facility will produce magnets powering approximately 500,000 electric vehicle motors per year, with potential to scale. The project will also create approximately 150 high-skill jobs and 1,300 indirect jobs.

The AllianceTexas Mobility Innovation Zone Ecosystem

The MIZ offers a unique and comprehensive ecosystem, providing mobility visionaries with unparalleled access to infrastructure, resources, and partnerships. This ecosystem is instrumental in scaling and commercializing new technologies, and MP Materials’ presence further cements its potential.

The journey to reshape the logistics industry and the global supply chain has begun. By re-shoring rare earth magnets to the U.S., we are not only creating economic opportunities but also strengthening national security and ensuring a sustainable future for smart technologies and intelligent transportation systems. As electrification continues to power our world, the importance of innovative ecosystems like the MIZ will be central to its success.

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