After posting a loss for the full year 2020, the operator of California’s Mountain Pass mine ended 2021 with a significant profit.
MP Materials reported fourth-quarter and full-year 2021 figures (PDF) on Thursday evening. Compared to the same quarter last year, rare earth oxide production increased by 10 per cent to 10,261 tonnes. Net profit increased by 103 per cent to US$49 million. For the full year, a net profit of 135 million dollars was posted, compared to a loss of 22 million dollars in the previous year.
MP Materials operates the Mountain Pass rare earth mine in California. However, the processing of the raw materials extracted there is done in China, as the corresponding facilities are not available in the USA. The government support announced this week is intended to accelerate the build-up and make Mountain Pass the backbone of rare earth supply in the US (we reported). According to MP Materials’ financial results press release, the mine’s raw material reserves should last for about 35 years, according to the latest estimates.