MP Materials sued rival USA Rare Earth in May 2026 for allegedly stealing high-performance magnet technology. The lawsuit claims a former MP engineer shared confidential trade secrets after joining USA Rare Earth.
USA Rare Earth formally denied all allegations in a Texas court on June 22. The company characterized the legal action as a baseless attempt to stall its momentum in the domestic supply chain.
Both companies receive significant government support to decrease U.S. dependence on Chinese rare earth minerals. These materials are essential for manufacturing electric vehicles and advanced defense systems.