USA Rare Earth Inc. filed a vigorous response in Texas federal court, denying every claim made by rival MP Materials. The company called the lawsuit an unfounded attempt to hinder its growth and said it would “deny each and every” allegation that it misappropriated confidential information from a former MP employee.

The dispute follows MP's earlier filing accusing USA Rare Earth of a "raiding campaign" that poached several staff members and questioned the viability of USA Rare Earth's Round Top deposit in Texas and its pending magnet plant in Oklahoma. USA Rare Earth countered that MP is trying to slow its "bold vision" for a domestic rare‑earth supply chain, a sector attracting billions in public and private money amid Chinese dominance concerns.

Both firms operate critical assets—MP runs the Mountain Pass mine, the only active U.S. rare‑earth mine, while USA Rare Earth pushes forward with its Texas deposit and an Oklahoma processing facility. The legal battle underscores mounting competition as the United States races to secure strategic minerals for EVs, defense and high‑tech applications.