Revenues for rare earth oxides dropped in the first quarter.
MP Materials (MP) on Thursday reported figures for the first quarter ending in March. The top rare earths producer in the U.S. reported a 42 percent year-over-year decline in revenues to a current $95.7 million. The company said this was due to lower realized prices for rare earth oxide concentrates and a decrease in sales volumes. As a result, and due to investments in continued growth, net income fell 56 percent to $37.4 million.
Despite the price decline, MP was able to further develop the individual business units, according to CEO James H. Litinsky. In addition, production exceeded 10,000 metric tons for the eighth consecutive quarter, he said. Production of separated rare earth elements at the Las Vegas-based group’s Mountain Pass mine in California is moving closer, progress has also been made on the construction of a rare earth magnet plant in Texas, the company added.
MP is playing a critical role in building a domestic rare earths supply chain in the United States. Once the most important mine for these critical commodities, Mountain Pass mine’s importance declined due to strong Chinese competition. The U.S. has become increasingly dependent on imports from the People’s Republic, because neodymium, terbium, and other critical raw materials are crucial for the energy transformation and electromobility. At the same time, the relationship between the superpowers has deteriorated significantly in the recent past.
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