MP Materials’ decision to put its magnet refinery and processing operations in Fort Worth, Texas was driven by a mix of logistics, workforce, incentives, and strategic positioning — not just geography.
Here’s the breakdown:
1.
Logistics & Transportation
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Central U.S. location makes Fort Worth ideal for shipping magnets and alloys to both automakers in the Midwest (GM, Tesla suppliers) and electronics hubs in California and Mexico.
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Direct access to BNSF and Union Pacific rail lines, major interstates (I-35, I-20, I-30), and DFW International Airport streamlines global and domestic shipments.
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Proximity to Gulf Coast ports (Houston, Galveston) for international raw material movement if needed.
2.
Automotive Supply Chain Proximity
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GM’s Arlington Assembly Plant (SUV production) is only ~15 miles away.
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Texas is also home to Toyota’s truck plant in San Antonio, Tesla’s Gigafactory in Austin, and growing EV supply chain clusters.
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Being near end customers reduces shipping costs and lead times for just-in-time manufacturing.
3.
Skilled Workforce & Industrial Base
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Fort Worth has an existing pool of advanced manufacturing and aerospace workers thanks to Lockheed Martin, Bell Helicopter, and defense contractors.
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Local tech schools and universities (UTA, TCU, TCC) offer engineering and materials science talent pipelines.
4.
Energy & Utilities
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Texas has abundant and relatively low-cost electricity, which is critical for rare-earth processing, metallization, and high-heat sintering.
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Deregulated energy market allows industrial users to negotiate competitive long-term power contracts.
5.
Incentives & Government Support
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The City of Fort Worth and the Fort Worth Economic Development Partnership offered tax abatements and infrastructure support.
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Texas generally has no corporate income tax and competitive property tax policies for manufacturing projects.
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The federal Section 48C tax credit ($58.5 million) and Department of Defense grant ($35 million) were easier to align with a Texas location that had strong political and industrial support.
6.
Geopolitical & Strategic Considerations
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Choosing a central, secure, inland location mitigates risk from coastal port disruptions.
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Texas has a long history of being a defense manufacturing hub, which reassures both the Pentagon and major corporate buyers (GM, Apple) about supply chain resilience.
7.
Symbolic & Strategic Branding
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Texas positions the plant as a national-scale manufacturing centerpiece, not tied exclusively to either the West Coast or Rust Belt.
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“Independence” — the facility’s name — is as much about U.S. rare-earth independence from China as it is about the Texas industrial spirit.
Bottom line:
MP Materials picked Fort Worth because it’s logistically central, politically favorable, manufacturing-friendly, and close to big customers like GM and Apple. It also offers a skilled workforce and cost advantages that make large-scale, energy-intensive rare-earth processing economically viable in the U.S.
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