By Rita Cook
Correspondent
Texas Metro News
AUSTIN – Texas Governor Greg Abbott announced a partnership last week that began last July and will allow Texas the chance to reduce its foreign dependency on obtaining neodymium-iron-boron (NdFeB) magnets, which are critical for advanced semiconductor chip fabrication.
These magnets will be especially important because they are used in AI data centers, which are being built in Texas with a report identifying 46 potential data center projects across various stages in the state as of February 2026.
The magnets are also used for products, including drones, and robotics.
The rare earth magnet maker MP Materials Corp. will establish a rare earth magnet manufacturing campus in Northlake called 10X.
10X is part of MP’s public-private partnership with the U.S. Department of Defense.
Abbott’s office released a statement “As part of the agreement, the Defense Department agreed to purchase $400 million in MP stocks. This strategic investment will position the department as the company’s largest shareholder.”
The facility will be located near Harmonson Road and FM156 in Northlake and will be lesson than a dozen miles from the companies Fort Worth location.
“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 & 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.”
The new Northlake facility is expected to create more than 1,500 new jobs and will represent over $1.25 billion in capital investment.
“Hardworking Texans will advance America’s semiconductor manufacturing independence,” Abbott said in a press release.
A Texas Enterprise Fund (TEF) grant of $12,880,500 has been extended to MP Materials for the development of the campus’ corporate operations. TEF is a performance-based grant that may be awarded to a business relocation or expansion project for which one Texas site is in competition with out-of-state locations to create new, good-paying jobs in the community and attract significant new capital investment to the state.
Governor Abbott signed the Texas CHIPS Act into law in 2023 to establish the Texas Semiconductor Innovation Fund (TSIF), a grant program to continue Texas’ leadership in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium (TSIC). The Texas Semiconductor Innovation Fund (TSIF) grant of $53,457,500 has also been extended for the new manufacturing facility.
Abbott said “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.”
The county commissioners in Denton County also approved a tax abatement of up to $9.3 million over a 10-year term in late January on behalf of the project.
Town of Northlake Mayor Brian Montini said “Northlake is incredibly excited that MP Materials has chosen Northlake for its next major facility and a $1.25 billion investment in our community. 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. Our Town Council, along with Northlake’s economic development boards and our county and state partners, worked tirelessly to ensure MP Materials knew that Texas is the best place in America to invest, grow, and do business. We are proud of the collaboration that brought this opportunity to Northlake, and we look forward to the jobs, economic growth, and long-term community impact this project will deliver for our residents and the entire region.”
“When we pass smart, pro-growth policies, companies choose Texas — and this investment proves North Texas is leading America’s industrial resurgence,” Senator Tan Parker said.
Added to that comment, Representative Mitch Little said “Denton County and all North Texas are thrilled to see MP Materials deepen its roots in our community. 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.” Overall these programs administered by the Texas CHIPS office, which is a division within the Governor’s Texas Economic Development & Tourism Office are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
Rita Cook is a world traveler and writer/editor who specializes in writing on travel, auto, crime and politics. A correspondent for Texas Metro News, she has published 11 books and has also produced low-budget films.
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