MP Materials (MP) said Wednesday morning it started commercial production of neodymium-praseodymium metal in addition to trial production of automotive-grade, neodymium-iron-boron magnets at its Independence factory in Fort Worth, Texas.

With the start of production, the company said the US is moving one step closer to re-establishing a fully integrated, domestic supply chain for rare earth metal, alloy and magnet manufacturing for the first time in decades.

The Independence facility is expected to eventually produce around 1,000 metric tons of finished neodymium-iron-boron magnets each year, with a gradual ramp up in production beginning later in 2025, MP Materials said.

Raw materials will be sourced from the company's Mountain Pass mine and processing facility in California, which delivered over 45,000 metric tons of rare earth oxides in concentrated form during 2024, representing an all-time high for domestic primary production, the company said.

MP Materials said the finished magnets will be purchased by General Motors (GM) and other manufacturers.

Shares were up more than 3% in early trading.

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