MP Materials: Downturn but Progress in the First Quarter

by | 3. May 2024 - 09:42 | Economy

Price level for rare earths weighs on profits.

MP Materials has started the first quarter of the current year with a decline in turnover and profit. Compared to the same period last year, both fell significantly by 49 and 56 percent, respectively, according to the company. The background to this is the current low price environment for rare earths, according to the operator of the only mine for these raw materials in the United States. The decline is also explained by the fact that fewer oxides were sold, as MP Materials has now started producing concentrate, the next stage in the value chain for rare earths. Accordingly, the oxides were unavailable for sale, while some concentrates were not yet available on the market.

MP Materials is playing a central role in establishing a U.S. supply chain for rare earths and components made from them. A factory is currently being built in Fort Worth, Texas, to produce permanent magnets, which are needed to manufacture electric vehicles, for example. When presenting the quarterly figures, CEO and founder James H. Litinsky reported progress. Customers have already been found for the first 1,000 tons of production well before the plant goes into operation.

Photo: iStock/EvgenyMiroshnichenko

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