MP Materials: The Key to America’s Rare Earth Independence and Clean Energy Future

Discover how MP Materials is reshaping America’s rare earth supply chain, supporting clean energy and defense, and reducing reliance on China in 2025.

In 2025, the world is facing a major shift in the supply of rare earth elements. These are special minerals used in products like electric cars, wind turbines, and advanced defense systems. China currently controls about 85% of the world’s rare earth processing. When China decided to limit exports of these minerals, it caused big problems for countries like the United States and its allies.

Rare earth elements are not actually rare in the earth’s crust, but they are hard to find in large amounts and even harder to process. They are essential for making strong magnets, which are used in electric vehicles (EVs), wind turbines, and military equipment. For example, every electric car motor contains about 2 kilograms of rare earth magnets, and each large wind turbine can use up to a tonne of these magnets.

MP Materials is a company that stands out in this changing landscape. It operates the only active rare earth mine in the United States, called the Mountain Pass mine in California. This mine produces about 15% of the world’s rare earth concentrates. What makes MP Materials unique is that it is building the entire supply chain in America—from mining to making finished magnets. This is called vertical integration, which means the company controls every step of the process. This approach helps protect against supply disruptions and gives the company more control over prices.

The U.S. government is supporting this effort. In 2025, a new law was signed to cut Chinese rare earth imports by half by 2028. The government is also giving grants to help companies like MP Materials build processing plants in the U.S. This support is important because it helps create a secure and reliable supply of these critical materials.

Demand for rare earth elements is growing fast. The International Energy Agency predicts that demand for some of these minerals in clean energy could rise by 2,600% over the next 20 years. This is driven by the growth of electric vehicles and renewable energy. At the same time, the defense industry needs these materials for advanced weapons and radar systems.

MP Materials is also investing in recycling rare earths from old electronics, which helps reduce waste and adds another source of supply. Big companies like Microsoft and Western Digital are working on projects to recover rare earths from used hard drives.

By controlling the full supply chain and having strong government support, MP Materials is in a powerful position. The company’s new magnet factory in Texas is expected to supply up to 70% of U.S. demand for these magnets, enough for millions of electric vehicles each year.

In summary, MP Materials is not just another mining company. It is at the center of America’s push for clean energy, national security, and supply chain independence. As the world moves away from relying on China for rare earths, companies like MP Materials are leading the way in building a secure and sustainable future.

For more information about the people behind this movement, visit the Felix PrehnGoat Academy.