MP Materials (MP) is emerging as a pivotal player in the U.S. rare earth supply chain, with its Mountain Pass facility producing 20% of global rare earth oxides. Investors are reassessing whether a $100 allocation could capitalize on growing demand in clean energy and defense sectors.
- MP Materials produces ~18,000 metric tons of rare earth oxides annually, accounting for 20% of global output.
- The company received a $150 million U.S. Department of Energy grant for processing expansion.
- Revenue rose 34% YoY to $112 million in the latest quarter.
- Adjusted EBITDA reached $34 million, reflecting improved operational efficiency.
- A 10-year supply deal with General Electric ensures demand for neodymium and praseodymium.
- A $350 million processing expansion is underway, with 50% capacity increase expected by mid-2026.
MP Materials has become a cornerstone of U.S. efforts to reduce reliance on Chinese rare earth supply chains. The company operates the only active rare earth mine and processing facility in the United States, located in Mountain Pass, California, producing approximately 18,000 metric tons of rare earth oxides annually. This output represents roughly 20% of global supply, a significant position given the strategic importance of these minerals in electric vehicles, wind turbines, and defense systems. Recent federal initiatives, including the Inflation Reduction Act and Department of Defense contracts, have accelerated demand for domestically sourced rare earths. MP Materials has secured a $150 million grant from the U.S. Department of Energy to expand its separation and processing capabilities, critical for producing high-purity rare earth elements. The company also signed a 10-year supply agreement with General Electric to provide neodymium and praseodymium, key components for high-performance magnets used in EV motors and wind generators. In the latest quarter, MP reported revenue of $112 million, up 34% year-over-year, with adjusted EBITDA of $34 million. The stock has appreciated 125% over the past 12 months, reflecting growing investor confidence in its long-term positioning. However, the company still faces challenges related to scaling processing infrastructure and managing cost volatility in raw material inputs. Market analysts note that MP’s strategic role in national security and clean energy transitions makes it a unique investment within the materials sector. Institutions and retail investors alike are monitoring its progress in completing the $350 million expansion of its processing plant, expected to increase capacity by 50% by mid-2026.