MP Materials Lifts Rare Earths Output, But Deepening Losses Reflect Cost Pressures

MP Materials

Mountain Pass Mine Production Climbs, While Margins Face Squeeze from Rising Costs

NdPr Metal, Magnet Output Set to Expand US Supply Chain

MP Materials, a leading US rare earths producer, increased its output at the Mountain Pass mine in California during the fourth quarter of 2024. However, the company’s net loss grew, driven by higher production costs and lower global rare earth prices.

Rare Earth Oxides and NdPr Output Hit New Highs

MP produced 11,478 tonnes of rare earth oxides (REO) in concentrate in Q4, up from 9,257 tonnes the previous year. For the full year, production reached 45,455 tonnes, marking a 9% annual increase. Notably, neodymium-praseodymium (NdPr) oxide output surged to 413 tonnes in Q4 and 1,294 tonnes for 2024, up from just 200 tonnes in 2023. MP also boosted production of cerium chloride, lanthanum carbonate, and SEG+ (mixed heavy rare earth oxides).

Sales and Revenue Growth Offset by Deepening Losses

Fourth-quarter sales included 7,803 tonnes of REO in concentrate and 468 tonnes of NdPr oxide, contributing to a 48% year-on-year revenue increase to $61 million. MP now supplies NdPr to top global automakers and the US Department of Defense. However, full-year revenue fell to $203.9 million (from $253.45 million in 2023) due to lower rare earth prices and reduced REO sales volumes amid the ramp-up of MP’s own separation facility.

Despite these achievements, net loss widened to $22.3 million in Q4 and $65.4 million for 2024. The company attributed losses to increased production costs, new interest payments, lower interest income, and higher depreciation linked to new capital investments.

Downstream Expansion and Magnet Manufacturing on the Horizon

MP continues to strengthen its downstream capabilities, expanding at its Independence magnetics factory in Texas. In 2023, it started commercial NdPr metal production and has begun trial production of automotive-grade magnets. The company targets first magnet deliveries by late 2025 and plans to commence large-scale sintered NdFeB magnet production later this year.