MP Materials' 10X Facility and What It Means for Brazil

MP Materials' Department of Defense partnership, announced in July 2025,

commits the United States to building 10,000 tonnes of annual rare-earth

magnet capacity by 2028 — roughly ten times the company's current

production. The so-called 10X programme is the biggest visible bet on

non-Chinese rare-earth independence, and it has direct implications for

Brazil.¹

The 10X Numbers

The headline arithmetic of the 10X programme is straightforward. MP

Materials' Independence facility in Fort Worth, Texas, commissioned

commercial production of neodymium-praseodymium metal and trial

production of sintered NdFeB magnets during 2025, with the full ramp

targeting approximately 1,000 tonnes per year of finished magnets.¹ The

DoD-backed 10X Facility, announced in July 2025, will add another 7,000

tonnes per year of capacity, and the existing Independence facility will

be expanded from 1,000 to 3,000 tonnes per year. Combined, MP Materials'

U.S. rare-earth magnet manufacturing capacity will reach an estimated

10,000 tonnes per year once commissioning is complete.¹

That target is ambitious in absolute terms. For context, Chinese output

of sintered NdFeB magnets was approximately 138,000 tonnes in 2018

according to CSIS estimates.² MP Materials' 2028 target of 10,000 tonnes

would therefore represent roughly 7 percent of China's historical scale

— still small relative to Chinese capacity, but a transformational step

relative to where U.S. output sits today.

The DoD Partnership Explained

On 10 July 2025, MP Materials announced that the U.S. Department of

Defense would become its largest shareholder through the purchase of

US$400 million in preferred stock.¹ The structure is unusual: a

sovereign defence ministry taking a direct equity position in a

commercial mining-and-processing company rather than financing through

grants, loans or offtake contracts alone.

The logic is strategic rather than financial. Rare earths enter critical

U.S. defence systems — the F-35 fighter carries more than 900 pounds of

rare-earth content; an Arleigh Burke DDG-51 destroyer requires around

5,200 pounds; a Virginia-class submarine approximately 9,200 pounds.³

Loss of access to Chinese rare-earth supply would directly affect the

Pentagon's ability to produce the platforms in its 2027-2030 procurement

cycle. The DoD treats MP Materials as strategic infrastructure in the

same way it treats specific defence contractors and shipyard operators.

The July 2025 partnership also illustrates the post-April 2025 policy

environment. Before China's export-control escalation, the case for

public-sector equity in a rare-earth producer would have been harder to

build. After it, the economic and strategic cases converged, and the DoD

moved quickly.

The Mountain Pass to Magnet Value Chain

The 10X programme is meaningful operationally because MP Materials holds

a verifiable end-to-end value chain. Mountain Pass in California is the

only operational rare-earth mine in the United States — a

bastnaesite-bearing deposit discovered in 1949 and reactivated under MP

Materials' ownership over the past decade.⁴ Concentrate from Mountain

Pass is processed into separated oxides on-site, and the separated

oxides feed into metal-making and magnet-forming operations at the Fort

Worth Independence facility.

Owning the full chain matters because it removes the dependency on

Chinese midstream processing — which is where the pinch-points have

historically been for Western rare-earth ambitions. A U.S. mine without

U.S. separation capacity still depends on Chinese refining; MP

Materials' 10X programme is explicitly designed to break that dependency

by ensuring that every step from ore to finished magnet happens

domestically.

What It Means for Brazil

At first glance, MP Materials' 10X programme looks like a competitor to

Brazilian rare-earth ambitions. On closer examination, it is closer to a

complement — and in several dimensions a direct enabler.

First, MP Materials' capacity growth is concentrated in magnet-forming,

which is downstream of the rare-earth extraction and separation that

Serra Verde, Aclara and Meteoric are pursuing in Brazil. A U.S. magnet

industry at 10,000 tonnes per year needs to source its separated

rare-earth oxides from somewhere, and non-Chinese sources — including

Brazilian ionic-clay operations and the Viridis-Ionic refining hub in

Poços de Caldas — are the natural candidates.

Second, the U.S. Department of Defense's willingness to take equity in

MP Materials demonstrates a policy threshold that was not previously

obvious. The same logic that produced the 10X partnership could easily

extend to U.S. Department of State or DFC equity positions in Brazilian

projects, or to direct offtake agreements between U.S. magnet

manufacturers and Brazilian producers. The precedent has been set.

Third, MP Materials' 10X trajectory validates the broader strategic

narrative that underpins Brazilian rare-earth investment. If Western

capital and policy treat rare-earth independence as strategically

important enough to justify multi-billion-dollar commitments in the

United States, the case for allied supply from Brazil gains weight

accordingly.

Friend-Shoring Versus On-Shoring

The policy literature sometimes contrasts on-shoring (domestic

production in the United States) with friend-shoring (production in

allied countries). The 10X programme is primarily on-shoring; the DFC's

US$465 million Serra Verde commitment is primarily friend-shoring.

Together they describe a complementary strategy rather than a

competitive one.

The Brazilian case for friend-shoring rests on specific advantages that

on-shoring cannot replicate: abundant ionic-clay deposits with

heavy-rare-earth content, lower cost structure, speed to production

(Serra Verde is already producing), and the possibility of scaling to

larger tonnages than U.S. geology supports without heavy policy

intervention. A world in which both pathways are pursued in parallel is

the most likely outcome of the 2025-2028 period, and Brazil is

positioned to benefit from that parallelism.

Outlook

The 10X facility is expected to begin commissioning in 2028, and MP

Materials' 2025 Q3 results suggested that construction is progressing on

schedule. For Brazilian producers, the intervening three years are a

window: during construction, the U.S. will still need supplementary

rare-earth supply, and offtake contracts signed now will underpin the

investment decisions that shape Brazil's 2028-2030 production curve. The

smart read of the 10X programme from São Paulo, Belo Horizonte and

Goiânia is not that U.S. production is going to displace Brazilian

ambition — it is that the combined scale of Western rare-earth demand

growth is arguably bigger than any single supplier can fill alone, and

Brazilian producers who move quickly to lock in offtake agreements

during 2026-2027 will effectively be supplying the same Western

end-markets that MP Mate

Related:
All rare earth articles | Brazil Critical Minerals | Brazil Mining Journal