MP Materials(US:MP) The Motley Fool·2026-01-11 11:45Core Viewpoint - MP Materials is strategically positioned in the U.S. rare earth supply chain, making it a potential beneficiary of the AI infrastructure buildout [1][2][3]. Company Overview - MP Materials has transitioned from a rare earth mining and processing company to a vertically integrated entity, covering upstream mining, midstream separation and refining, and downstream production of high-performance permanent magnets [4]. - The company operates Mountain Pass, the only major rare-earth mining and processing site in the U.S., which is essential for producing high-performance magnets used in electric vehicles, defense systems, AI data centers, and semiconductor manufacturing [4]. Production and Financial Performance - In Q3, MP Materials' NdPr oxide production increased by 51% year-over-year to 721 metric tons, while overall rare earth oxides production reached a record 13,254 metric tons [7]. - The company aims for an annual output of 60,000 metric tons, with rapid production capacity expansion expected to boost the downstream magnet business [7]. Strategic Partnerships - In July 2025, MP Materials secured a public-private partnership with the U.S. Department of Defense, which includes a 10-year price floor protection agreement at $110 per kilogram for NdPr products, enhancing earnings visibility and cash flow predictability [8]. - Apple has committed $500 million to MP Materials for long-term purchases of American-made rare-earth magnets and the establishment of a dedicated rare-earth recycling line, improving demand visibility and reducing downside risk [9]. - MP Materials is collaborating with General Motors for the commercial-scale qualification of permanent magnets, with sales expected to begin in the second half of 2026 [10]. Market Performance - MP Materials' shares have increased by over 242% in the past year, reflecting its critical role in the rare-earth supply chain and improving earnings visibility [10].