MP Materials Sues USA Rare Earth for Stealing Magnet Tech as America’s Rare Earth War Turns Inward

MP Materials Filed a Texas Lawsuit on May 22 Accusing USA Rare Earth of Stealing Proprietary Grain Boundary Diffusion Magnet Technology Through a Former Employee

MP Materials Sues USA Rare Earth for Stealing Magnet Tech as America’s Rare Earth War Turns Inward. MP Materials Filed a Texas Lawsuit on May 22 Accusing USA Rare Earth of Stealing Proprietary Grain Boundary Diffusion Magnet Technology Through a Former Employee.

The Wall Street Journal reports that MP Materials; the only company mining and processing rare earths at commercial scale in the United States, filed a lawsuit on May 22 in the Texas Business Court against USA Rare Earth, alleging a former engineer named Kevin Elkins shared confidential grain boundary diffusion formulations with the rival company, which then passed the technology to a third-party firm, FOM Technologies.

Grain Boundary Diffusion Is the Critical Magnet Technology That Determines Whether America Can Build EVs and Weapons Systems Without Chinese Inputs

Grain boundary diffusion is a process that boosts the performance of neodymium-iron-boron permanent magnets used in electric vehicles, defense systems, and advanced electronics. MP Materials developed its proprietary formulation through years of work and millions of dollars of investment.

Both companies are major beneficiaries of the Trump administration’s push to build a mine-to-magnet supply chain independent of China, with MP Materials securing a landmark agreement with the US government that included a minority ownership stake and price support mechanisms.

The Lawsuit Exposes a Structural Contradiction in US Industrial Policy; Funding Two Rivals for the Same Strategic Prize

The legal battle pits two companies both backed by the Trump administration’s strategy to challenge China’s rare earth dominance against one another; a reminder that America’s effort to loosen China’s grip is still in its early stages, and that some of the fiercest battles are taking place between domestic rivals, not overseas competitors.

Washington bet on two companies to beat China. Now they are suing each other. The irony writes itself. Check out our previous coverage of technology and geopolitics here.