MP Materials Corp.

What they do

The company operates two reportable segments: Materials, covering upstream and midstream mining and refining at Mountain Pass, the only rare earth mining and processing site of scale in North America; and Magnetics, covering downstream metal, alloy and magnet manufacturing at the Independence Facility in Fort Worth. Materials produces refined rare earth oxides and related products, including NdPr oxide and metal. Magnetics began generating revenue from magnetic precursor sales to General Motors in Q1 2025 and commenced NdFeB permanent magnet manufacturing in December 2025.

Revenue drivers

• Materials segment (NdPr oxide and metal) — Generates revenue from sales of NdPr oxide and metal, primarily to customers in the U.S., Japan, South Korea and broader Asia; generated $95.6 million of revenue plus $17.6 million of PPA Income and $32.5 million of Adjusted EBITDA in Q2 2026.
• Materials segment (rare earth concentrate, legacy) — Historically generated the majority of segment revenue from rare earth concentrate sold to a distributor that typically resold to refiners in China; concentrate sales ceased beginning in July 2025.
• Magnetics segment (magnetic precursor products) — Revenue from magnetic precursor product sales to a single U.S. customer (General Motors) began in Q1 2025; the segment generated $16.5 million of revenue and $7.5 million of Adjusted EBITDA in Q2 2026.
• NdFeB permanent magnets and heavy rare earths — NdFeB magnet manufacturing began in December 2025, and the company signed a long-term offtake agreement with a new American aerospace and defense customer for separated gadolinium to expand its HREE business.

Recent performance

Q2 2026 consolidated revenue rose 89% year over year to $108.5 million, plus $17.6 million of price protection agreement income. NdPr production was 840 metric tons, up 41% year over year, and NdPr sales were 1,006 metric tons, up 127%. Adjusted EBITDA was $28.5 million versus $(12.5) million in Q2 2025, and net loss improved to $(20.3) million from $(30.9) million. Full-year 2025 revenue was $224.4 million with a net loss of $85.9 million and operating cash flow of $(155.8) million; 2026 quarterly revenue has risen from $53.6 million in Q3 2025 to $108.5 million in Q2 2026.

Strategy

The company's stated mission is to restore the full rare earth magnetics supply chain to the United States. Under definitive agreements with the U.S. Department of War entered July 9, 2025, it will expand the Independence Facility, construct a second magnet plant (the 10X Facility) in Northlake, Texas, and extend heavy rare earth refining at Mountain Pass. The DoW has guaranteed the 10X Facility will generate at least $140 million of EBITDA and has the right to purchase all magnets produced there. The company also entered an NdPr price floor protection agreement with the DoW covering NdPr sold or stockpiled from Q4 2025, and in February 2026 signed an NdPr offtake agreement with a leading U.S. technology and industrial company. It closed the approximately $80 million purchase of the 120-acre 10X site in April 2026, with construction underway.

Risks

• Rare earth price and demand volatility — The company states it may be adversely affected by fluctuations in demand for, and prices of, REE and magnet materials.
• DoW funding and covenant risk — There can be no assurances that funding of and support for the DoW Transaction Agreements will not be modified, challenged or impaired, and the agreements contain affirmative and negative covenants that may restrict actions management believes are important to its long-term strategy.
• Execution and startup risk on new facilities — The company cites unanticipated costs or delays associated with the Independence Facility, the 10X Facility and other future magnetics facilities, plus risks in its ability to produce and supply NdFeB magnets and precursor products.
• Customer concentration and contract conversion — Magnetics segment revenue began with sales to a single U.S. customer, General Motors, and the company cites risk in converting commercial discussions for rare earth oxide, metal and magnet products into contracts, as well as risks in meeting its long-term agreement with Apple.

Outlook

Management points to ramping NdPr production and sales, advancing magnet qualification at Independence through additional customer deliveries and regulatory testing, and accelerating construction of the 10X facility. It describes signing a significant long-term gadolinium offtake with a new U.S. aerospace and defense customer and launching Project Swarm to aggregate demand and standardize specs for the drone industry. The company frames these moves as strengthening vertical integration and building what it believes will be a differentiated industrial platform.