MP Materials Corp. / DE (NYSE: MP)

MP Materials is the largest producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility in California which is the only rare earth mining and processing site of scale in North America. It also owns and operates the Independence Facility in Fort Worth Texas where it produces magnetic precursor products and neodymium iron boron permanent magnets.

The Materials segment generates revenue primarily from sales of neodymium praseodymium oxide and metal to customers in Japan South Korea and broader Asia. Historically it also earned revenue from sales of rare earth concentrate to a distributor that supplied refiners in China. The Magnetics segment generates revenue from sales of magnetic precursor products and finished neodymium iron boron magnets to General Motors and Apple. Additionally the company has entered into agreements with the United States Department of War that include offtake commitments and price protection for its neodymium praseodymium products.

The company operates through the following segments: Materials and Magnetics.

• Materials segment encompasses upstream and midstream operations at Mountain Pass including mining crushing milling flotation roasting leaching impurity removal separation extraction and product finishing to produce refined rare earth oxides such as neodymium praseodymium oxide and metal as well as cerium lanthanum and a mixed heavy rare earth product known as SEG+ Revenue is derived from sales of these separated oxides and metals and historically from rare earth concentrate sold to a distributor for Chinese refiners.

• Magnetics segment covers downstream magnet manufacturing at the Independence Facility in Fort Worth Texas where neodymium praseodymium oxide from Mountain Pass is converted into metal alloy flake powder and then pressed sintered and machined to produce neodymium iron boron permanent magnets and magnetic precursor products Revenue comes from sales of these magnets and precursor products to General Motors Apple and other customers with plans to expand capacity through a second facility known as the 10X Facility.

MP Materials holds the position of the only scaled and vertically integrated source of rare earth materials and magnet products in the Western Hemisphere. Its low cost production at Mountain Pass combined with environmental standards gives it a competitive advantage over foreign producers. The company faces competition from state sponsored conglomerates in China that dominate global rare earth refining and magnet manufacturing as well as a single major integrated operator in Australia and Malaysia. Nevertheless MP Materials differentiation stems from its control of the full supply chain from mine to magnet and its strategic partnerships with the United States Department of War General Motors and Apple.

The Materials segment serves Japanese South Korean and broader Asian customers for its neodymium praseodymium oxide and metal and also supplies rare earth concentrate to a distributor that historically sold to Chinese refiners. The Magnetics segment sells magnetic precursor products and finished neodymium iron boron magnets to General Motors and Apple. Through a distribution agreement with Sumitomo Corporation of Americas the company provides neodymium praseodymium oxide to Japanese customers.