CEO: Government Must Support Critical Industries
MP Materials reported a drop in revenue in the third quarter, citing the impact of its new partnership with the U.S. Department of Defense (DoD). As part of the agreement reached this summer, the leading U.S. rare earth producer committed to halting exports of rare earth products to China. The Las Vegas–based company reported a 15% year-over-year decline in revenue, resulting in a wider net loss for the quarter. MP Materials had already suspended exports to China in April due to high tariffs.
Despite the revenue decline, the company reported positive developments in sales of magnetic precursors and neodymium-praseodymium (NdPr), as production of separated rare earths increased. Under the DoD agreement, the Pentagon guarantees a minimum price for neodymium and praseodymium, the company’s two most important products, effective October 1, according to remarks made during a conference call on quarterly results, cited by Reuters.
MP Materials CEO James Litinsky emphasized the importance of government investment in strategic industries, saying control over critical materials, advanced technologies, and the supply chains that support them has become a decisive measure of national power.
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