The Las Vegas-based company closes the quarter with a positive result thanks to rising demand and higher prices for rare earths.
MP Materials, operator of the only rare earths mine in the U.S. to date, has reported figures for the past second quarter. According to the press release, the company benefited from strong demand for critical raw materials and a simultaneous increase in price levels. As a result, MP Materials reported net income of $73.3 million. A significant increase from the year-ago quarter, when a profit of $27.2 million was posted.
MP Materials mines rare earths such as neodymium at its Mountain Pass mine in California, where the material is also processed into oxides. Further processing takes place in China, as corresponding facilities are still lacking in the U.S., but this is expected to change in the medium term.
Meanwhile, the construction of a rare earth magnet plant in Texas, announced in April this year, is making progress, according to MP Materials CEO James H. Litinsky. The plant is scheduled to go into operation as early as 2023 and will supply, among others, the car manufacturer General Motors with magnetic components for electric vehicles (we reported).