During the Fort Worth City Council meeting on May 21, council members approved the company to receive state benefits after being nominated to take part in the Texas Enterprise Zone Program. According to city documents, the level and amount of the benefits, which will be given as a refund, will be related to the capital investment and jobs created at the site.
The Texas Enterprise Zone Program is a state tax refund program meant to encourage private investment and job creation in economically distressed areas of the state, according to the website of Gov. Greg Abbott.
The background
MP Materials supplies United States-sourced and manufactured rare earth materials, alloy and finished magnets for the electric motors in more than a dozen models for General Motors, according to the website. The magnets produced by MP Materials can also be used in robots, wind turbines, drones, defense systems and many other high-growth technologies.
The details
MP Magnetics, located at 13840 Independence Parkway, has planned a $74 million investment for manufacturing for rare earth materials equipment and a $100 million investment for maintenance and improvement of an existing 200,000-square-foot building in the Alliance area of Fort Worth from June 1, 2024-June 1, 2029.
MP Materials will retain 90 employees with an average salary of $80,390 and will add 260 jobs with an average salary of $120,784, according to documents.
What else?
The designation allows for a state sales and use tax refund of $2,500 per job for up to 350 jobs. At least 35% of the new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans, according to the agreement.
