U.S. rare earth company posts quarterly figures
MP Materials, one of the leading U.S. producers of rare earth elements, reported a significant 84% year-over-year increase in revenue for the second quarter. According to the company, the growth was driven by higher production volumes of separated rare earths, as well as the first-time revenue contribution from precursor materials used in magnet manufacturing. Overall, output from the company’s Mountain Pass mine rose by 45%.
Despite the strong operational performance, the company still posted a net loss for the quarter, though it was smaller than analysts had anticipated, according to Reuters.
In July, the U.S. Department of Defense announced plans to invest $400 million in MP Materials. The two parties also signed a 10-year offtake agreement for neodymium-praseodymium (NdPr), featuring a price guarantee well above current market rates. The move was widely interpreted as a concrete step by the U.S. government toward building a supply chain independent of China.
Shortly after the Pentagon partnership was announced, MP Materials unveiled another strategic collaboration, this time with Apple. The tech giant will be sourcing magnets from MP Materials. According to CEO James Litinsky, the two companies have been working together on a technical level for the past five years. Apple’s investment will help expand production capacity, and its global supply chain will make more recyclable materials available for reprocessing at MP Materials facilities, Litinsky noted during a conference call.
Photo: ownway via Canva