MP Materials narrows loss on record rare earth output
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MP Materials’ second quarter marked a turning point for the Nevada-based rare earth miner. The company reported revenue of $57.4 million, an 84 percent increase from a year earlier. Record production included 597 metric tons of neodymium-praseodymium oxide, up 119 percent, and 13,145 metric tons of total rare earth oxide, up 45 percent. While the company still posted a loss, it was narrower than in prior quarters. The results pushed shares higher as investors saw production growth as evidence that its expansion strategy is taking hold.
Why the DoD partnership matters for price stability and scale
In July, MP Materials finalized a long-term agreement with the US Department of Defense. The deal set a 10-year neodymium-praseodymium price floor and secured a decade of magnet offtake. This structure limits exposure to price swings and provides a steady revenue stream. The DoD also became a major shareholder, highlighting the national security stakes in rare earth supply. By locking in demand for US-produced NdPr, the partnership supports investments in refining capacity and downstream manufacturing.
In a separate development, MP Materials signed a multiyear agreement with Apple worth $500 million. Apple will buy rare earth magnets produced at MP’s Fort Worth, Texas, facility. Commercial production of metal began in January 2025, with initial trial runs for automotive-grade magnets in progress. The Apple deal gives MP Materials a marquee customer and a strong incentive to scale output quickly.
The global rare earths map and the US supply chain gap
China retains a dominant role in rare earth refining, a bottleneck for global supply. While MP Materials’ Mountain Pass mine is the only active rare earth mining and processing site in the United States, most output is still refined overseas. Analysts expect strong growth in demand for NdFeB magnets through 2040, fueled by electric vehicles, wind power, and electronics. Without more domestic refining and magnet-making capacity, the United States risks ongoing dependence on foreign sources.
Observers will track how quickly MP Materials can bring its Fort Worth magnet facility to full capacity and generate earnings from its Magnetics segment. Near-term production goals, execution on supply contracts, and further policy support for critical minerals will shape the company’s outlook. For manufacturers that rely on rare earth magnets, MP’s progress could mark a step toward a stronger domestic supply chain.
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