The Company
MP Materials is a U.S.-based rare earth materials company focused on producing and supplying critical rare earth elements (REEs), particularly neodymium-praseodymium (NdPr), which are essential for manufacturing high-performance permanent magnets. These magnets are used in a variety of technologies including electric vehicles (EVs), wind turbines, drones, and defense systems. MP operates the Mountain Pass facility in California, the only rare earth mining and processing site of scale in North America.
Financials (as of FY 2024)
- Revenue: $334 million
- Gross Profit: $120 million
- Net Income: $53 million
- EBITDA Margin: ~35%
- Cash & Equivalents: ~$1 billion
- Debt: ~$700 million
- Market Cap: ~$3.5 billion
MP’s financials reflect strong margins and a capital-light model post-initial investment in processing capabilities. Revenue has been impacted by fluctuations in rare earth commodity prices, especially NdPr.
TAM / CAGR
- Total Addressable Market (Global Rare Earth Magnets): $25 billion (2024)
- Expected CAGR (2024–2029): ~10%
Growth is driven by increased demand from electric vehicles, clean energy, and national security initiatives aimed at reshoring critical materials supply chains.
Products
| Product / Service | Description | % of Revenue |
|---|---|---|
| Rare Earth Oxide Concentrate (NdPr) | Primary concentrate used in permanent magnets | 85% |
| Lanthanum & Cerium | Byproducts primarily used in catalysts and glass production | 10% |
| Other Services & Materials | Includes recycling, consulting, and nascent magnet manufacturing | 5% |
MP is in the process of expanding downstream to manufacture finished magnets in the U.S., which could diversify and shift this mix over time.
Business Model
MP Materials operates a vertically integrated rare earth production model, starting from mining and refining to value-added processing. Initially focused on extracting and selling rare earth concentrates, the company is expanding into magnet manufacturing to capture more value downstream and address national security concerns around foreign (particularly Chinese) supply chains. It earns revenue by selling rare earth elements under both spot and long-term contracts to manufacturers in the automotive, electronics, and defense industries.
Customers
- Tier 1 Electric Vehicle OEMs (e.g., General Motors)
- Defense Contractors
- Global Electronics Manufacturers
- Green Energy Firms (e.g., wind turbine component makers)
MP has entered into long-term supply agreements, notably with GM, to provide domestically sourced rare earth materials and magnets.
Competitors
| Competitor | Description |
|---|---|
| Lynas Rare Earths | Australia-based rare earths producer with mining and processing operations. |
| China Northern Rare Earth Group | Largest global producer; dominates global REE refining and magnet production. |
| Iluka Resources | Australian company investing heavily in rare earths processing and refining capabilities. |
These companies compete directly in the mining and refinement of rare earths, with Lynas and China Northern seen as leaders in magnet-grade NdPr supply.
Main Investors
| Investor | % Ownership |
|---|---|
| JHL Capital Group | 12.1% |
| Vanguard Group | 7.8% |
| BlackRock | 6.3% |
| State Street | 4.7% |
| Fidelity Investments | 3.9% |
These institutional investors have maintained consistent stakes, with JHL also being instrumental in the company’s founding and SPAC merger.
Founding History
MP Materials was founded in 2017 after acquiring the Mountain Pass mine out of bankruptcy. The mine had previously been operated by Molycorp, which failed in 2015 due to market volatility and high operating costs. MP was formed by a group of investors led by JHL Capital and QVT Financial, who saw the strategic value in revitalizing domestic rare earth production. The company went public in 2020 through a reverse merger with Fortress Value Acquisition Corp., a SPAC.
Invest Alpha 