🚨 US Magnet Update: MP Ships, E-VAC Builds & Prices Wobble

🚨 US magnet production is starting up, but bottlenecks remain. While MP Materials is shipping its first magnet blocks, volatile raw material prices and logistics swings show supply chain risks are real. Here are the moves you need today:

🧠 Monday Morning Playbook — 30-Second Scan, 5-Minute Action

• Monitor Price Volatility: Current Nd/Dy oxide prices (FOB China) are hard to pin down without subscriptions, trending volatile. Keep a close eye on the market; review index clauses if needed.

  • Sources: Argus Metals / ISE Prices

• Check MP Materials Capacity: Fort Worth is delivering initial samples (targeting 1kT/year end of 2025), GM is a customer. Verify if specs fit your needs & secure production slots.

  • Source: MP Materials News (Stock Titan)

• Investigate DOE Recycling Funding: The US government is funding recycling and critical materials via IRA/BIL & programs like E-SCRAP. Check if your projects qualify.

  • Sources: White House Fact Sheet / E-SCRAP News

✍️ Copy-Paste for Suppliers: "Hi [Supplier], have we received/scheduled test samples from MP Materials Fort Worth? Need a PPAP slot for Q3/Q4."

⚡ Risk Dashboard — Immediate Actions

• Neodymium Oxide (FOB China): Price Volatile. Signal: Prices unclear, monitor market. Action: Review index clauses, build in buffers.

• Dysprosium Oxide (FOB China): Price Volatile. Signal: Critical for high-performance magnets. Action:Scrutinize RFQs for ≥48EH grades.

• Asia→US WC Freight (FEU): Price $2,617. Change: 🔽 2%. Signal: Rates dipped (Drewry), but outlook uncertain. Action: Secure June/July bookings early. Drewry WCI

🎯 One Big Thing — US Magnet Makers: Who Can Ship Today (or Soon)?

• ✅ MP Materials – Fort Worth, TX

  • Status: Producing (Ramp-up)

  • Planned 2026 Capacity: 1 kt/year

  • Latest: First blocks/samples running, GM contract secured. Link

• ⚠️ E-VAC (VAC) – Sumter, SC

  • Status: Under Construction

  • Planned 2026 Capacity: 2 kt/year

  • Latest: $111.9M tax credit + DoD grant secured, completion late 2025. Link

• 🕓 USA Rare Earth – Stillwater, OK

  • Status: Innovation Lab Running

  • Planned 2026 Capacity: 1.2 kt/year

  • Latest: Prototyping Q2 '25, production planned from 2026, IPO completed. Link

• 🧪 Niron Magnetics – Sartell, MN

  • Status: Pilot / Construction Planned

  • Planned 2026 Capacity: 0.5 kt/year

  • Latest: Rare-earth-free (Fe-N), $52M tax credit, Stellantis partnership. Link

• 📐 Quadrant Magnetics – Louisville, KY

  • Status: Planned / ITAR Issues

  • Planned 2026 Capacity: 0.3 kt/year

  • Latest: NeoGrass project announced (2022), but recent executive guilty pleas for ITAR violations raise flags. Link 1 (Project) / Link 2 (ITAR)

Impact: Even if all five plants ramp perfectly, US production covers <10% of projected 2026 EV magnet demand.Action: Secure domestic slots + keep import channels open.

🏭 Topic of the Week — Can America Close Its Magnet Gap?

Short Answer: No, not anytime soon. Billions from IRA & BIL help, but skilled labor and processing gaps remain huge. Recycling funding (e.g., E-SCRAP) creates new sources but scales slowly. Fe-N innovation (Niron) holds promise but needs time.

Next Steps:

1. Add REO-indexed clauses to Nd/Dy contracts.

2. Map recyclers within 300 miles of your plants.

3. Budget for Fe-N pilot testing (Niron) for 2026. Further Reading → White House Critical Minerals Fact Sheet

🔢 Quick Hits

• $111.9M IRA tax credit for E-VAC in Sumter, SC – Time for US dual sourcing! VAC News

• MP Materials ships first US magnet samples to GM from Fort Worth plant. MP News

• Asia→US Freight drops to $2,617/FEU (Drewry) – Pull June/July bookings forward. Drewry WCI

• USA Rare Earth launches Innovation Lab in Oklahoma for prototyping. USARE News

👥 Personnel Moves (Recent)

• James “JT” Jones joins NOVA Chemicals as Chief Supply Chain & Procurement Officer.

• Parmeshwaran Iyer appointed Chief Supply Chain Officer at Apollo Tyres.

• Maxime Picat leads Global Purchasing & Supply Chain at Stellantis. (Source: CPO Rising Feb 28, Manufacturing Digital)