April 1 (Reuters) - MP Materials has been awarded $58.5 million by the U.S. government to help with the construction of its rare earth magnet manufacturing facility in Fort Worth, Texas, the miner said on Monday.

The company expects the facility to start producing finished magnets by late 2025. The products will be supplied to General Motors for its North American EV production.

CONTEXT

Last week, the Biden Administration announced $4 billion in tax credits for over 100 projects across 35 states to boost manufacturing of clean energy equipment and reduce greenhouse gas emissions at industrial facilities.

Rare earths are a group of metals used to maker magnets that are found in electric vehicles, wind turbines and electronics.

MARKET REACTION

The company's shares rose 2.1% to $14.6 in morning trade.

WHY IT IS IMPORTANT

China, the world's top processor of rare earths, banned the export of technology to make rare-earth magnets late last year.

The U.S. backed two Australian-listed rare earths projects last month with up to $850 million of funding as Western nations build a supply chain and wean themselves from dependence on China.

BY THE NUMBERS

China accounts for nearly 90% of global refined rare-earths output. The country exported 52,307 metric tons of the minerals last year, the highest since 2018.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila)