Annual financial statements presented: Sales and profits up significantly.
MP Materials, the only U.S. producer of rare earths, has released figures for the full year 2022 as well as the quarter ended December. With a total of 42,499 tons, 2022 saw the highest annual production of rare earths in U.S. history, the mining company announced Thursday. Revenue increased 59 percent year-over-year to $527.5 million, attributed to higher selling prices for rare earth oxides as well as greater sales volumes. Net income grew even faster, earning $289 million, an increase of 114 percent.
MP Materials also reported progress in building its own rare earth supply chains. As we reported, the company’s raw materials in Japan will be distributed exclusively by Sumitomo Corporation in the future (we reported). This will reduce China’s role in the value chain, as MP Materials previously shipped its precursors to the People’s Republic for further processing, where Japanese companies then purchased the goods.
A binding supply contract has also been signed with US auto manufacturer General Motors for rare earth alloys and magnets for electric vehicles. MP Materials is currently building a factory in Texas for the production of these components (we reported).