Texas Gov. Greg Abbott has announced that MP Materials Corp. will build a rare earth magnet manufacturing campus in Northlake, a project expected to generate more than 1,500 jobs and involve over $1.25 billion in capital investment.
The expansion includes a $12,880,500 grant from the Texas Enterprise Fund for corporate operations and a $53,457,500 award from the Texas Semiconductor Innovation Fund for a facility to boost production of neodymium-iron-boron magnets, which are essential for semiconductor manufacturing.
“Hardworking Texans will advance America’s semiconductor manufacturing independence,” said Abbott.
“This Texas-sized investment by MP Materials in Northlake will create more than 1,500 corporate, manufacturing, and engineering jobs and dramatically expand domestic manufacturing of rare earth magnets to reduce reliance on foreign supply chains. This expansion in North Texas reflects the strength of our skilled and growing workforce and our advanced manufacturing expertise. Working together with innovative industry partners, Texas will accelerate America’s leadership for decades to come,” Abbott continued.
The new site, dubbed “10X,” sits less than 10 miles from the company’s current Fort Worth facility and aims to ramp up high-performance magnet production to support U.S. semiconductor production and reduce foreign dependencies.
“10X is about building industrial strength at a scale the United States has not seen in generations, and the exceptional talent and infrastructure in North Texas make it possible,” said MP Materials Founder, Chairman, and CEO James Litinsky.
“We are advancing key objectives under our public-private partnership with the Department of War and accelerating America’s rare earth and magnet independence with an uncompromising focus on speed, execution, and delivery,” Litinsky continued.
“When we pass smart, pro-growth policies, companies choose Texas — and this investment proves North Texas is leading America’s industrial resurgence,” said state Sen. Tan Parker (R-Flower Mound).
“Denton County and all of North Texas are thrilled to see MP Materials deepen its roots in our community,” said state Rep. Mitch Little (R-Lewisville). “These 1,500 new jobs represent the type of essential, skilled work that helps Texans achieve the American dream and makes our country more secure.”
“Northlake is incredibly excited that MP Materials has chosen Northlake for its next major facility and a $1.25 billion investment in our community,” said Northlake Mayor Brian Montini. “This is a historic milestone for our town and a strong statement about the future of Northlake as a destination for world-class industry and innovation.”
“Denton County is proud to lead in advanced manufacturing, and MP Materials’ decision to locate in Denton County will play a pivotal role in strengthening U.S. rare earth production,” said Denton County Judge Andy Eads. “This facility will create high-quality jobs and reinforce the nation’s leadership in critical technologies.”
The Texas Enterprise Fund offers performance-based grants to attract projects competing with out-of-state sites, with a focus on capital investment and job creation. Eligible companies must plan facility openings or expansions with significant employment and investment, and must compete against other locations in Texas.
Grants are cash incentives based on a model considering new employee wages, hiring timelines, job numbers, and total investment.
Abbott signed the Texas CHIPS Act in 2023, creating the Texas Semiconductor Innovation Fund and Consortium to bolster the state’s semiconductor sector, encourage company growth, enhance higher education capabilities, and sustain Texas’ dominance in manufacturing.
The programs fall under the Texas CHIPS Office in the Governor’s Economic Development & Tourism Office.
Last year, MP Materials received a $150 million federal loan to expand its rare-earth processing capabilities at its California facility, The Dallas Express reported. The loan marked the first deployment of funds from the Pentagon’s Office of Strategic Capital, which was created to counter China’s dominance of the rare-earth minerals market.
