Why It Matters

MP Materials Corp. is shifting its government affairs strategy at a pivotal moment for domestic rare earth policy. The company’s decision to establish in-house lobbying marks a significant escalation from its previous reliance on external firms alone.

Congress is advancing the Rare Earth Magnet Security Act of 2025, which would create production tax credits of $20-$30 per kilogram for domestically made magnets. The Pentagon has invested nearly $540 million in critical minerals projects and become MP Materials’ largest shareholder.

By the Numbers

MP Materials Corp. has dramatically shifted its government affairs strategy with a new in-house lobbying operation beginning in 2025.

Since 2018, MP Materials has spent over $2.9 million across 78 lobbying disclosures. The company previously relied on six external firms:

The September 24, 2025 registration establishes one dedicated in-house lobbyist beginning December 5, 2025, focusing on U.S. rare earth supply chain competitiveness.

The Agenda

MP Materials Corp. is lobbying on issues centered on U.S. rare earth supply chain competitiveness, pushing for production tax credits, defense funding, and strategic trade policies.

The primary legislative focus is the Rare Earth Magnet Security Act of 2025 (H.R. 1496) and its Senate companion S. 1979, which would establish production tax credits for domestically made rare earth magnets.

The company is also engaged on successive National Defense Authorization Acts and broader policy areas including natural resources, taxation, trade, and defense. Congress has advanced multiple bills targeting critical minerals strategy, including the S. 429 STRATEGIC Minerals Act and S. 789 Critical Minerals Security Act of 2025.

Broader Context

Congress is aggressively advancing legislation to rebuild America’s rare earth supply chain and reduce dependence on China. Multiple House and Senate committees have held hearings on critical minerals strategy, with lawmakers expressing alarm about China’s control of 90% of global rare earth processing capacity.

The Pentagon has emerged as a major driver, investing nearly $540 million in critical minerals projects and becoming MP Materials’ largest shareholder through a multibillion-dollar "mine-to-magnet" partnership announced in July 2025. The Trump administration has similarly prioritized supply chain independence, allocating $2 billion to expand the National Defense Stockpile.

However, MP Materials faces structural challenges. The company’s Mountain Pass mine contains only trace amounts of heavy rare earth elements critical for defense systems. The West will still rely on China for approximately 91% of heavy rare earth needs by 2030, creating constraints on growth ambitions.

Between The Lines

Key legislative efforts creating favorable conditions for MP Materials include:

Competitive Landscape

MP Materials Corp. is part of a broader industry coalition lobbying Congress on rare earth supply chain issues.

Noveon Magnetics Inc. and Schaeffler Group USA Inc. are actively lobbying for production tax credits in the Rare Earth Magnet Security Act. Magnetic Holdings LLC is focused on securing provisions in the FY26 National Defense Authorization Act.

This collective industry effort demonstrates broad consensus on the need for federal support, extending MP Materials’ advocacy reach across multiple companies competing to reshape the domestic rare earth landscape.

The Bottom Line

MP Materials Corp. is establishing in-house lobbying operations at an exceptionally favorable policy moment. Congress is actively advancing legislation that would create production tax credits directly supporting MP Materials’ business model, while the Pentagon has made multibillion-dollar partnership commitments. The company’s shift from external-only lobbying to a hybrid approach reflects strategic positioning to influence critical minerals legislation as it advances through Congress.

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