KSNV: Southern Nevada tourism slowdown sparks urgent calls for economic diversification

LAS VEGAS (KSNV) — The recent slowdown in tourism across Southern Nevada has reignited concerns about the region's heavy reliance on the tourism industry.

With hospitality accounting for 23% of Nevada's workforce—more than double the national average of 11%—the need for economic diversification has become increasingly urgent.

However, a significant announcement in Summerlin may signal a shift towards economic diversification.

M-P Materials, a mining company headquartered in Summerlin, has signed transformational agreements with the U.S. Department of Defense and Apple.

The company, the only fully integrated producer of rare earth materials and magnets in the United States, plans to expand its local workforce, which currently stands at nearly 700 employees.

"We're going to be investing hundreds of millions of dollars and adding hundreds of more jobs to add all of these new capabilities," said Matt Sloustcher, Executive Vice President of M-P Materials. "We're looking for great people that can operate machinery, that can operate plants. And I think that's really significant as Southern Nevada looks to diversify the economy."

Representative Susie Lee, who hosted the announcement, emphasized the importance of this development. "This is a game changer, bringing domestic production to the United States, investing in companies that have invested in America, like M-P Materials has," said Lee. "Employing hundreds, if not thousands of Americans, primarily who will be calling Southern Nevada home."

The Department of Defense will invest over a billion dollars in M-P Materials, becoming its largest shareholder.

In return, the Las Vegas-based company will supply rare earth materials to the military, breaking the monopoly currently held by China.

This move represents a significant step towards diversifying Southern Nevada's economy beyond its traditional reliance on tourism.