MP Materials is currently stockpiling concentrate while expediting its downstream operations.
The company stated: “Selling our valuable critical materials under 125% tariffs is neither commercially rational nor aligned with America’s national interest.” It further noted: “We have been preparing for this moment since day one. Our mission, capital strategy, and execution reflect a long-term vision built to withstand short-term dislocation and emerge stronger.”
This decision significantly affects MP Materials, which has relied on Chinese facilities for refining rare earths while developing its processing capabilities in California. The company has invested nearly $1 billion to establish a full rare earth supply chain within the United States.
MP Materials is now stockpiling concentrate and accelerating its downstream operations, including increasing oxide production, advancing heavy rare earth separation, and starting magnet production in Texas. Its California refinery processes nearly half of its output, with most products supplied to markets like Japan, South Korea, and the United States.
The company has seen growing inquiries from manufacturers in critical industries seeking stable sources of rare earth materials and magnets. MP Materials stated: “We are uniquely positioned to answer that call,” emphasizing its collaboration with U.S. federal leaders to support domestic industry.
Recently, U.S. President Donald Trump ordered an investigation into potential tariffs on critical minerals imports to bolster U.S. processing capabilities and strengthen domestic supply chains.
